Sydakhatoon Mahammad Karimnagar Vs ITO (ITAT Hyderabad)
The Income Tax Appellate Tribunal (ITAT), Hyderabad disposed of two appeals filed by the assessee relating to Assessment Year 2017-18 concerning additions made under Section 69A of the Income Tax Act on account of cash deposits in bank accounts. In the first appeal, the assessee, a small businesswoman engaged in stitching, embroidery, and brick manufacturing, contended that cash deposits of Rs. 33.10 lakh represented business receipts from brick sales and embroidery work, along with certain personal funds received from family members. The assessee stated that payments to labourers engaged in brick manufacturing were made through the same bank account and produced affidavits, Aadhaar copies, and bank statements in support of her claim. She further requested that income be assessed under the presumptive taxation scheme of Section 44AD, stating that she did not maintain formal books of account due to lack of education and accounting knowledge.
The Assessing Officer had treated the entire cash deposits of Rs. 33.10 lakh as unexplained money under Section 69A, and the CIT(A) confirmed the addition. Before the Tribunal, the assessee submitted that she was now in a position to furnish additional documentary evidence to substantiate the source of deposits. The Tribunal observed that if the assessee could support the claim with evidence, the matter required proper verification. In the interest of substantial justice, the ITAT set aside the order of the CIT(A) on this issue and restored the matter to the file of the Assessing Officer for fresh adjudication after granting adequate opportunity to the assessee. The assessee was permitted to file additional evidence, and the Assessing Officer was directed to decide the issue afresh in accordance with law. The appeal was allowed for statistical purposes.
