INCOME TAX ACT, 1961

Section 69A

Income from undisclosed source - Unexplained investment under section 69A - Cash deposits in Bank account -

Assessee was engaged in SAREE business. The case was selected for scrutiny through CASS for assessment year. AO held that assessee had not produced any evidence to show that she was engaged in retail saree trade and proceeded to make an addition to assessee's returned income on account of cash deposited in assessee's bank account. CIT(A) dismissed the assessee's plea on the ground that assessee had not produced evidence in support of the claims that she had carried out the business of retail saree trade. Held: Cash deposits in the bank account could not be automatically construed to be income exigible to the tax from undisclosed sources under section 69A. From an appraisal of assessee's bank account indicated that the said cash deposits apparently were made out of cash withdrawals during the year and re-deposited in the bank account depending on the exigencies of assessee's business. Revenue was not able to controvert this argument/contention of assessee and therefore, addition of cash deposits made by AO as income from undisclosed sources under section 69A was unsustainable.

Relied:Collector, Land Acquisition v. Mst. Katiji & Ors. (1987) 167 ITR 471 (SC) : 1987 TaxPub(DT) 1279 (SC) CIT & Anr. v. ISRO Satellite Centre in (IT Appeal Nos. 532 to 534 and 1114 to 1123 of 2008; 152 to 161 of 2009 and 416 to 429 of 2010, dt. 28-10-2011) Smt. Asha Surendra Kumar, v. ITO, Ward 6 (2), Bengaluru. in (I.T.A. No.343/Bang/2017, 28-4-2017)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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