Case Law Details
Sarita Tyagi Vs ITO (ITAT Delhi)
The issue under consideration is whether the addition made by the A.O. for cash deposited into saving bank account by the assessee is justified in law?
The assessee is engaged in medical profession as well as a partner in Priyadarshi Hospital. The assessing officer initiated re-assessment proceedings against the assessee by observing that the assessee was found to have deposited cash in her saving bank account, the source of which has not been revealed in the income tax return.
ITAT states that assessee is carrying on his professional practice wherefrom he has shown the net professional income and remuneration from Priyadarshi Hospital. The opening balance shown by the assessee is also deposited in the savings bank account. The gross receipt shown in his profit and loss account from professional fees which was deposited in the bank account in cash. In view of this, ITAT direct the ld AO to delete the addition to that extent since the source has been explained by the assessee.
FULL TEXT OF THE ITAT JUDGEMENT
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