January 2023
Where the assessee stated that the source of cash deposit in its bank accounts was the balance of cash in hand brought forward from earlier assessment years, but the AO treated the same as an unexplained investment without assigning any reason, then impugned additions made u/s 69 was not justified.
Where the Department had accepted that the assessee had earned a tuition fee in preceding assessment years then in terms of principle of consistency, the AO had no justifiable reason to disbelieve assessee’s claim of having received income from tuition fee and add the same to assessee’s income as unexplained money u/s 69A.
Jagdish Punjabi, Chartered Accountant
Devendra Jain, Advocate
Devendra Jain, Advocate
53. Smt. Sarabjit Kaur vs. ITO
[2022] 96 ITR(T) 440 (Chandigarh – Trib.)
ITA Nos.:1144 & 1145 (Chd.) of 2019
A.Ys.: 2011-12 and 2013-14
Date of order: 30th March, 2022
Sections: 69, 69A
Where the assessee stated that the source of cash deposit in its bank accounts was the balance of cash in hand brought forward from earlier assessment years, but the AO treated the same as an unexplained investment without assigning any reason, then impugned additions made u/s 69 was not justified.
Where the Department had accepted that the assessee had earned a tuition fee in preceding assessment years then in terms of principle of consistency, the AO had no justifiable reason to disbelieve assessee’s claim of having received income from tuition fee and add the same to assessee’s income as unexplained money u/s 69A.
FACTS
A.Y. 2011-12
The assessee earned income from tuition as well as rent, and interest from bank and other parties. An information was received from the Investigation Wing of the Income Tax Department vide letter dated15th March, 2017 that the assessee had deposited cash of Rs. 8,00,000 in her bank account maintained with Axis Bank, Jagraon and Rs. 5,40,000 in her bank account with HDFC bank, thus, totalling to a deposit of Rs. 13,40,000. In view of this information, a notice u/s 148 of the Income-tax Act, 1961 was issued and in response to the said notice, the assessee filed the return which was originally filed u/s 139(1).
During the course of re-assessment proceedings, the assessee was required to explain the source of cash deposit of Rs. 13,40,000. The assessee stated before the AO that the deposit was from the closing balance of cashin hand in the immediately preceding assessment year amounting to Rs. 12,61,473 and was also partly out of cash withdrawals of Rs. 3 lakhs from Axis bank. The assessee was asked to furnish cash book/cash flow statement but the same were not furnished. The AO gave benefit of cash withdrawal of Rs. 3 lakhs from the Axis Bank and counted such withdrawal towards availability of cash for the purpose of cash deposit but proceeded to treat the remaining amount of Rs. 10,40,000 as unexplained and added the same to the income of the assessee u/s 69. The AO also proceeded to add the tuition fee of Rs. 2,03,600 as income from undisclosed sources. The assessment was completed at an income of Rs. 12,84,780.
Against the order of the learned AO, the assessee preferred first appeal before the CIT(A) who confirmed the action of the AO. Aggrieved by the order of CIT(A), the assessee filed a further appeal before the ITAT.
A.Y. 2013-14
The assessee had deposited cash of Rs. 10,40,000 in her bank account maintained with HDFC Bank, Jagraon.
Acting on the information received from the Investigation Wing vide letter 15th March, 2017, the assessee’s case was reopened by issuing notice u/s 148 of the Act. In response t
[2022] 96 ITR(T) 440 (Chandigarh – Trib.)
ITA Nos.:1144 & 1145 (Chd.) of 2019
A.Ys.: 2011-12 and 2013-14
Date of order: 30th March, 2022
Sections: 69, 69A
Where the assessee stated that the source of cash deposit in its bank accounts was the balance of cash in hand brought forward from earlier assessment years, but the AO treated the same as an unexplained investment without assigning any reason, then impugned additions made u/s 69 was not justified.
Where the Department had accepted that the assessee had earned a tuition fee in preceding assessment years then in terms of principle of consistency, the AO had no justifiable reason to disbelieve assessee’s claim of having received income from tuition fee and add the same to assessee’s income as unexplained money u/s 69A.
FACTS
A.Y. 2011-12
The assessee earned income from tuition as well as rent, and interest from bank and other parties. An information was received from the Investigation Wing of the Income Tax Department vide letter dated15th March, 2017 that the assessee had deposited cash of Rs. 8,00,000 in her bank account maintained with Axis Bank, Jagraon and Rs. 5,40,000 in her bank account with HDFC bank, thus, totalling to a deposit of Rs. 13,40,000. In view of this information, a notice u/s 148 of the Income-tax Act, 1961 was issued and in response to the said notice, the assessee filed the return which was originally filed u/s 139(1).
During the course of re-assessment proceedings, the assessee was required to explain the source of cash deposit of Rs. 13,40,000. The assessee stated before the AO that the deposit was from the closing balance of cashin hand in the immediately preceding assessment year amounting to Rs. 12,61,473 and was also partly out of cash withdrawals of Rs. 3 lakhs from Axis bank. The assessee was asked to furnish cash book/cash flow statement but the same were not furnished. The AO gave benefit of cash withdrawal of Rs. 3 lakhs from the Axis Bank and counted such withdrawal towards availability of cash for the purpose of cash deposit but proceeded to treat the remaining amount of Rs. 10,40,000 as unexplained and added the same to the income of the assessee u/s 69. The AO also proceeded to add the tuition fee of Rs. 2,03,600 as income from undisclosed sources. The assessment was completed at an income of Rs. 12,84,780.
Against the order of the learned AO, the assessee preferred first appeal before the CIT(A) who confirmed the action of the AO. Aggrieved by the order of CIT(A), the assessee filed a further appeal before the ITAT.
A.Y. 2013-14
The assessee had deposited cash of Rs. 10,40,000 in her bank account maintained with HDFC Bank, Jagraon.
Acting on the information received from the Investigation Wing vide letter 15th March, 2017, the assessee’s case was reopened by issuing notice u/s 148 of the Act. In response t
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