Case Number: ITA 1910/DEL/2020
Appellant: Dinesh Kumar, Palwal
Respondent: ITO Ward-1(2), Faridabad
Assessment Year: 2011-12
Case Filed On: November 27, 2020
Order Type: Final Tribunal Order
Date of Order: May 22, 2023
Pronounced On: May 22, 2023
This appeal, filed by Dinesh Kumar for the assessment year 2011-12, challenges the order of the Commissioner of Income Tax (Appeals), Faridabad, dated January 21, 2020. The main issues in this case were the delay in filing the appeal and the addition of Rs. 48,00,000 under section 69A of the Income Tax Act, 1961.
The appellant raised the following grounds:
The appeal was initially delayed by 237 days. The appellant’s counsel argued that the delay was due to the late receipt of the CIT(A)’s order and the lockdown imposed during the COVID-19 pandemic. The tribunal accepted this explanation, citing the Supreme Court’s order extending the limitation period due to the pandemic, and admitted the appeal.
The appellant did not press legal grounds no. 1 and 2, which were subsequently dismissed. The main arguments focused on the source of the cash deposits.
The appellant’s counsel submitted that the CIT(A) made an incorrect observation regarding the cash withdrawals. He provided a statement of cash deposits and withdrawals, showing total cash deposits of Rs. 48,10,499 and withdrawals of Rs. 44,39,976. Additionally, a cash gift of Rs. 4 lakh from the appellant’s mother, Smt. Ratni Devi, was included, bringing the total withdrawals to Rs. 48,39,976, which exceeded the cash deposits.
The Senior Departmental Representative (DR) argued that the cash gift was not substantiated by any documentation and should not be accepted as a valid explanation.
The tribunal noted that the appellant’s explanation for the cash deposits was consistent with the bank statements provided. The appellant had shown that the cash deposits were covered by withdrawals from the bank and a cash gift from the mother. The tribunal found that the CIT(A)’s observation was factually incorrect and that the source of the cash deposits was satisfactorily explained.
The tribunal directed the Assessing Officer to delete the addition of Rs. 48,00,000 made under section 69A, thereby allowing the appeal in favor of the appellant.
In conclusion, the tribunal ruled in favor of Dinesh Kumar, Palwal, deleting the addition of Rs. 48,00,000 made by the Assessing Officer under section 69A. The tribunal found that the appellant had successfully substantiated the source of the cash deposits with evidence from bank statements and a cash gift from his mother.
Order pronounced in the open court on May 22, 2023.
Members Present:
Shri Chandra Mohan Garg, Judicial Member
Dated: May 22, 2023
Dinesh Kumar, Palwal vs. ITO Ward-1(2), Faridabad – ITA 1910/DEL/2020
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