Case Law Details
Sri Narsimha Reddy Pindi Vs ITO (ITAT Hyderabad)
Introduction: Dive into the recent decision by ITAT Hyderabad in the case of Sri Narsimha Reddy Pindi vs ITO, where the Assessing Officer questioned a cash deposit during demonetization. The case revolves around the assessee’s ability to substantiate the source of the deposit, involving rental and agricultural income.
Detailed Analysis: Sri Narsimha Reddy Pindi, an individual deriving income from house property and agriculture, faced scrutiny over a cash deposit of Rs.4,04,500/- during demonetization. The Assessing Officer questioned the source, emphasizing the lack of evidence on loans given, and treated it as unexplained income under Section 69A r.w.s. 115BBE.
The NFAC Delhi upheld the addition, stating the appellant’s explanations were inconsistent and lacked supporting documents. The CIT (A) agreed, dismissing the claim that the deposit was from past savings, including rental and agricultural income. The appeal to the ITAT challenged these decisions.
The ITAT considered the stable rental income of Rs.6,72,000/- from two house properties and the undisputed possession of agricultural land. While the agricultural income was doubted due to inadequate documentation, the ITAT acknowledged the common practice of keeping emergency funds at home.
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