Case Number: ITA 1592/DEL/2020
Appellant: Ashite Kumar Singh, Ghaziapur
Respondent: ACIT Central Circle-6, New Delhi
Assessment Year: 2015-16
Case Filed On: 2020-09-16
Order Type: Final Tribunal Order
Date of Order: 2021-06-08
Pronounced On: 2021-06-08
In this case, Ashite Kumar Singh (the appellant) filed an appeal against the addition made by the Assistant Commissioner of Income Tax (ACIT) Central Circle-6, New Delhi under Section 69A of the Income Tax Act, 1961. The addition pertained to unexplained cash deposits for the assessment year 2015-16.
The appellant raised the following grounds of appeal:
The case was heard by Shri K. Narasimha Chary, Judicial Member, and Shri R.K. Panda, Accountant Member of the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘A’ on 08.06.2021. The order was pronounced on the same day.
The learned counsel for the appellant, Sh. VK Jindal, argued that the additions were unjustified as the appellant had sufficient cash balances from previous years to explain the deposits. The Revenue, represented by Sh. Satpal Gulati, CIT-DR, supported the orders of the lower authorities, arguing that the appellant’s salary was insufficient to explain the cash deposits.
After hearing the submissions and perusing the material on record, the Tribunal found that the appellant had sufficient cash balances at the end of each financial year to explain the deposits made during the subsequent years. The Tribunal noted that the Assessing Officer accepted the cash balances for the assessment years 2012-13 and 2013-14 without any objections.
The Tribunal observed that the appellant’s personal expenses were minimal, and there was no evidence to suggest that the cash balances were used for any other purposes. Therefore, the Tribunal held that the addition made by the Assessing Officer and confirmed by the CIT(A) was unjustified.
The Tribunal directed the Assessing Officer to delete the additions made under Section 69A of the Income Tax Act for the assessment year 2015-16.
This case highlights the importance of maintaining proper records of cash balances and personal expenses to justify cash deposits during subsequent years. The judgment reinforces the principle that as long as the appellant can provide a satisfactory explanation for the cash deposits, the Revenue cannot make additions under Section 69A of the Income Tax Act without any concrete evidence.
Overall, this case serves as a reminder for taxpayers to maintain detailed records of their financial transactions and to be aware of their rights and the legal remedies available to them in case of unjustified additions by the Revenue authorities.
The appeal of the appellant was allowed, and the additions made under Section 69A were deleted.
Order pronounced in the open court on this the 8th day of June, 2021 immediately after the conclusion of the hearing through virtual court.
Judicial Member: (K. Narasimha Chary)
Accountant Member: (R.K. Panda)
Dated: 8/6/2021
Copy forwarded to:
TRUE COPY
ASSISTANT REGISTRAR
ITAT NEW DELHI
Ashite Kumar Singh vs. ACIT Central Circle-6: Appeal Against Unexplained Cash Deposits
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