Case Number: ITA 1784/DEL/2021
Appellant: Ashok Wasan, New Delhi
Respondent: Circle-61(1), New Delhi
Assessment Year: 2017-18
Case Filed On: November 29, 2021
Order Type: Final Tribunal Order
Date of Order: April 28, 2023
Pronounced On: April 28, 2023
The case was heard by the Delhi Bench ‘A’ of the Income Tax Appellate Tribunal, which included:
The appellant, Ashok Wasan, filed an appeal against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated September 30, 2021. The appeal concerned the addition of Rs. 5,61,825/- under Section 69A of the Income Tax Act, 1961, on account of unexplained cash deposits.
Assessee By: Sh. K. Sampath, Adv. & Sh. V. Rajkumar, Adv.
Revenue By: Sh. Kanv Bali, Sr. DR
The hearing took place on April 25, 2023, and the order was pronounced on April 28, 2023.
The assessee raised the following grounds of appeal:
The Assessing Officer observed a sharp increase in cash receipts during the year under consideration (AY 2017-18), which was significantly higher than the previous and subsequent years. The professional receipts for various assessment years were analyzed, showing an abnormal increase of 26.96% in AY 2017-18 compared to around 15-17% in other years.
Despite repeated notices, the assessee did not provide satisfactory explanations or evidence regarding the cash deposits. The Assessing Officer, therefore, disallowed the excess amount of cash deposits over the regular trend of business activities, resulting in an addition of Rs. 5,61,825/- to the income of the assessee under Section 69A.
The tribunal found that there had been only one significant cash deposit of Rs. 165,000/- on account of old currency notes in the savings bank account. The assessee, being a practicing ENT specialist, had also deposited cash in his savings bank account (non-SBN), which was accepted by the Assessing Officer during the same period. The tribunal noted that the assessment order was based on estimation and lacked a legal basis, finding no abnormal cash deposits.
The tribunal held that the assessment order was legally invalid and allowed the appeal of the assessee. The addition of Rs. 5,61,825/- under Section 69A was deleted, and the appeal was allowed.
The official order was signed and dated on April 28, 2023, by the tribunal members:
Saktijit Dey
Judicial Member
Dr. B. R. R. Kumar
Accountant Member
Order Date: April 28, 2023
The order was distributed to:
The case was initially filed by Ashok Wasan challenging the addition of unexplained cash deposits made during the assessment year 2017-18. The appellant sought relief from the disallowance made by the Assessing Officer and sustained by the CIT(A), arguing that the cash deposits were legitimate professional receipts from his medical practice.
Ashok Wasan Appeal on Unexplained Cash Deposits for Assessment Year 2017-18
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