The appeal under consideration, ITA No. 1790/Del/2022, involves appellant Rakesh Rathi against the respondent ITO, Ward-58(5), both based in New Delhi, regarding the assessment year 2011-12. The appellant challenged the assessment order dated 11.07.2022 issued by the Learned National Faceless Appeal Center (NFAC), New Delhi. The main contention revolves around the invocation of sections 147/143(3) of the Income Tax Act, 1961, and the consequent additions under section 69A concerning unexplained cash credits.
Rakesh Rathi raised multiple grounds of appeal arguing that:
Detailed discussions and submissions highlighted the contextual background and specific transactions scrutinized by the Assessing Officer (AO) and the CIT (Appeals). The primary focus was on cash deposits amounting to Rs. 14,00,000 in the appellant’s bank account, which were contested as unexplained cash credits.
The tribunal meticulously examined the submissions, evidential documents, and relevant legal provisions. It was observed that the appellant successfully substantiated the source of cash deposits, through concrete evidence including bank statements, affidavits, and confirmations of gifts from related parties. Consequently, the tribunal directed the AO to delete the addition, thereby providing relief to the appellant on the disputed grounds.
The case ITA No. 1790/Del/2022 marks a significant discourse on the application of sections 147/143(3) and 69A of the Income Tax Act, setting a precedent for future cases dealing with similar issues. The final judgment, pronounced in favor of the appellant, underscores the importance of substantiating the source of income to negate allegations of unexplained cash credits.
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform