Brijesh Kumar Goswami vs. ITO: Dispute over Cash Deposits for AY 2010-11

Brijesh Kumar Goswami vs. ITO: Dispute over Cash Deposits for AY 2010-11

Case Number: ITA 6303/DEL/2019

Appellant: Brijesh Kumar Goswami, New Delhi

Respondent: Income Tax Officer, Ward-36(2), New Delhi

Assessment Year: 2010-11

Order Type: Final Tribunal Order

Date of Order: August 11, 2022

Pronounced On: August 11, 2022

Case Filed On: July 26, 2019

Background of the Case

The dispute centers around the assessment year 2010-11 where Brijesh Kumar Goswami was contested by the ITO over additions made to his income due to unexplained cash deposits in his bank account. The total disputed amount was Rs.16,13,500.

Details of the Dispute

The appellant had filed his return declaring an income of Rs.3,44,500. However, following the discovery of cash deposits amounting to Rs.15,12,500 in his bank account, the ITO reopened the assessment under section 147. Despite the appellant’s explanations and supporting evidence, the ITO added Rs.16,13,500 to the income under section 69A.

Legal Proceedings and Tribunal Decision

Upon appeal, the first appellate authority upheld the additions. Further scrutiny revealed that the cash deposits were substantiated by gifts from relatives, sale proceeds of an old car, and agricultural income, corroborated by additional evidence during the reassessment proceedings. The Assessing Officer eventually accepted the genuineness of these transactions.

The tribunal criticized the CIT(A)’s dismissal of this favorable remand report and directed the deletion of the addition of Rs.16,13,500, leading to the appeal being allowed.

Conclusion and Implications

This case highlights the importance of providing substantial evidence when contesting additions made by the ITO. The tribunal’s decision underscores the need for transparency and adequate assessment by the CIT(A) when new evidence is presented.

Brijesh Kumar Goswami vs. ITO: Dispute over Cash Deposits for AY 2010-11