Jai Singh Vs ITO (ITAT Lucknow)
ITAT Lucknow held that cash deposits out of the past savings during demonetization being reasonable and as per social standing of the assessee is justifiable. Accordingly, appeal of the assessee allowed and addition is directed to be deleted.
Facts- Matter involved herein is with regard to addition of Rs. 1,41,78,000/- towards unexplained income under section 69A of the Income Tax Act. Notably, out of the said amount, an amount of Rs.1,36,00,000/- was deposited in the assessee’s bank account pertaining to proprietary business of travel agent. The remaining amount of Rs.5,78,000/- was deposited by the assessee din the assessee’s savings bank account.
CIT(A) deleted addition amounting to Rs.1,36,00,000/- and sustained addition of Rs.5,78,000/-. The present two cross appeal, before us, have been filed by the assessee and by Revenue against the aforesaid impugned appellate order of CIT(A).
Conclusion- Held that the addition made by the Assessing Officer was coloured by mere fact that the deposits were made in SBNs. No material has been brought for our consideration by Revenue to persuade us to take a view different from the view taken by the learned CIT(A) regarding the aforesaid amount of Rs.1,36,00,000/-. The Assessing Officer has made the addition merely on the basis of doubts, surmises and suspicions; without giving careful consideration to the submissions made by the assessee, the information collected by the Assessing Officer himself u/s 133(6) of the I. T. Act, and the relevant facts and circumstances. Accordingly, we decline to interfere with the order of CIT(A) on the issue of addition amounting to Rs.1,36,00,000/- deleted by CIT(A) in the impugned appellate order. The appeal filed by Revenue is dismissed.
