Case Law Details
Smt. Krishna Agarwal Vs ITO (ITAT Jodhpur)
Smt. Krishna Agarwal (Appellant) filed an appeal against Order of Ld. CIT (A), NFAC, Delhi dated July 31, 2021 pertaining to Assessment Year (AY) 2017-18.
In the case, the Appellant contended that she derived income from renting of property and other income under “income from other sources” and had filed her due return. Appellant’s case was selected for limited scrutiny to verify the “Cash deposits during the year” and accordingly a Notice under Section 143(2) & 142(1) of the Income Tax Act, 1962 (ITAct) was issued by the Assessing Officer (AO).
During the assessment proceedings, the Appellant had submitted that she has deposited the cash amounting to ₹68, 95,000/- in her saving bank account and further contended, that those deposits were made out of cash in hand lying with her as on April 01, 2016 which can be duly verifiable from bank statements, cash flow statement and other documentary evidence placed on record.
The AO only on the basis of assumption & presumption and making wrong allegation without bringing on record any material or evidence to justify such allegation had treated the cash deposits of ₹68, 95,000/- as undisclosed income and passed the assessment order under Section 143(3) of the IT Act assessing the total income of ₹73, 92,980/- by making addition of ₹68, 95,000/- as unexplained cash deposits in bank account under Section 69A of the IT Act.
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