This document examines ITA 1687/DEL/2021, a significant case where Akhil Kumar Bansal contested adjustments related to alleged unexplained cash deposits during the assessment year 2017-18.
The case revolves around the appellant, Akhil Kumar Bansal, who faced disallowances concerning cash deposits made during the demonetization period, which were flagged by the IT department as unexplained. The case was addressed by the ITAT Delhi Bench ‘A’.
The appeal was filed against the National Faceless Appeal Centre’s decision which upheld the disallowances made by the Assessing Officer. The primary contention involved the source of cash deposits amounting to Rs.7,85,000 noted during demonetization.
The tribunal examined the appellant’s claims regarding the source of cash deposits linked to withdrawals and a shop sale. Notably, the tribunal found discrepancies in the Assessing Officer’s approach, especially concerning the cash flow statements provided by Bansal, which substantiated his claims about the source of the deposits.
The ITAT ruled in favor of the appellant, directing the deletion of the Rs.4,85,000 disallowance. The decision emphasized the importance of proper evidence assessment and the need for tax authorities to consider all factual details provided by the taxpayer.
This case highlights critical aspects of dealing with unexplained cash deposits, especially during sensitive periods like demonetization. It underscores the judiciary’s role in ensuring fair treatment of taxpayers and the necessity for the IT department to meticulously assess the evidentiary value of the information provided by taxpayers.
The case of ITA 1687/DEL/2021 serves as a pivotal reference for similar cases, illustrating the potential for successful appeals against unjustified tax disallowances when substantial evidence is presented.
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