The case ITA No. 1463/DEL/2021 involves Dayawati’s appeal against the Income Tax Department’s assessment of an unexplained cash credit for the fiscal year 2011-12. This analysis explores the tribunal’s examination and the final decision.
Dayawati faced a significant addition of Rs. 49,00,000 to her income as unexplained cash credit under Section 68 of the Income-Tax Act. The primary issue revolved around the purchase of agricultural land and the source of the cash used.
The tribunal reviewed the evidence provided regarding the cash transactions and the sources cited by Dayawati, including sales of rural land and family contributions. Despite the satisfactory evidence during the remand proceedings, the initial assessments did not accept these explanations, leading to the appeal.
The tribunal’s decision favored Dayawati, acknowledging that the evidence provided adequately explained the source of the cash used for the land purchase. This case highlights the importance of substantiating cash transactions to avoid unexplained cash credit additions.
The resolution of ITA 1463/DEL/2021 provides insight into handling cases of substantial cash transactions in tax assessments. It underscores the necessity for clear documentation and timely evidence presentation in disputes over unexplained cash credits.
Dayawati vs ITO, Gurugram: Challenging Unexplained Cash Credit – ITA 1463/DEL/2021
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