This case, ITA No. 970/Del/2020, concerns Dhupan Singh, represented posthumously by Shamsher Singh, against the Income Tax Officer, Ward-1, Rohtak for the assessment year 2010-11. The dispute revolves around substantial bank deposits flagged during income tax assessments.
The appeal arises from an assessment revisited by the Income Tax Department following the detection of cash deposits amounting to Rs.38,00,000 in the assessee’s bank account, purportedly without a clear source of income.
The case was initially reopened based on substantial bank deposits. The Assessing Officer (AO) made an addition of Rs.38,00,000 to the income, which was challenged by the assessee. The CIT (Appeals) partially allowed the appeal, acknowledging Rs.16,00,000 as explained but sustained an addition of Rs.22,00,000 as unexplained income.
During the tribunal’s review, arguments were presented that focused on the assessee’s long-standing agricultural income, which the CIT (Appeals) recognized but deemed insufficient to cover the full amount deposited. The tribunal, led by Judicial Member Shri Kul Bharat, further reduced the addition to Rs.8,00,000, acknowledging potential past savings from the agricultural income not previously considered.
The decision highlighted the necessity of considering historical income and savings in assessing current financial resources. The tribunal’s reduction of the addition reflects a nuanced understanding of the assessee’s financial history and the plausible legitimacy of his deposits. This case underscores the importance of thorough documentation and legal representation in disputes over significant tax assessments.
Financial Dispute Resolution: Dhupan Singh vs. ITO Ward-1, Rohtak – Assessment Year 2010-11
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