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| The Tax Publishers2020 TaxPub(DT) 2752 (Jp-Trib) INCOME TAX ACT, 1961
Section 69
Where revenue made addition by treating cash deposit in NRO bank account as unexplained under section 69, addition was unjustified when source of foreign currency and fact of bringing such foreign currency in country was not disputed by revenue, therefore, explanation of assessee that out of such funds, he made deposit in NRO account was reasonable.
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Income from undisclosed sources - Addition under section 69 - Cash deposited in NRO bank account alleged to be unexplained -
Assessee challenged order of CIT(A) confirming addition of Rs. 8,00,000 by treating cash deposit in NRO bank account as unexplained by not accepting explanation of the assessee as to source of deposit on surmises and conjectures. Held: Where source of such foreign currency and fact of bringing such foreign currency in country was not disputed by revenue, explanation of assessee that out of such funds, he deposited Rs. 8 lacs in his NRO bank account within a period of few days, was a plausible explanation in terms of source, quantum and timing perspective. No doubt, amount was found deposited in his bank account and onus was on assessee to explain nature and source of such deposit. But, once assessee has provided an explanation which in instant case, was found reasonable and plausible, deposit so made could not remain unexplained. In view of the same, even though assessee failed to bring on record any evidence issued by Thomas Cook in support of exchange of foreign currency with Indian Rupees, there was no basis for invoking provisions of section 69 in instant case.
REFERRED : CIT v. PK Noorjahan (1999) 237 ITR 570 (SC) : 1999 TaxPub(DT) 0080 (SC)
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, JAIPUR BENCH
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