Gurvinder Singh, represented by Shri Somil Agarwal, CA, and Dr. Rakesh Gupta, Advocate, successfully appealed against the income assessment for the year 2009-10, where Rs. 37 lakhs were initially added as unexplained cash deposits under Section 69A of the Income Tax Act. This case, ITA No. 549/DEL/2019, was heard by the Income Tax Appellate Tribunal, Delhi Bench ‘SMC’, under the judiciary of Shri Challa Nagendra Prasad.
The matter stemmed from the assessment year 2009-10 where the IT Department had issues with certain cash deposits made into Singh’s HDFC Bank account. During the reassessment, the Income Tax Officer noted cash deposits totaling Rs. 37 lakhs, which were unexplained at the time of the original assessment, leading to a substantial addition to Singh’s taxable income.
Upon appeal, detailed scrutiny and documentary evidence presented, including bank statements and withdrawal slips, clarified that these deposits were from legitimate sources, mainly withdrawals made with the intention to purchase land, which Singh later redeposited after the deals did not proceed. The Tribunal acknowledged these explanations and accepted the withdrawals and subsequent deposits as justified, leading to the removal of the Rs. 37 lakh addition from Singh’s assessed income.
This decision underscores the importance of maintaining detailed financial records and the effectiveness of judicial processes in resolving tax disputes. Singh’s case serves as a reminder of the taxpayers’ right to contest and clarify tax assessments, emphasizing the critical role of evidence in substantiating financial transactions.
Gurvinder Singh Successfully Appeals Against Unexplained Cash Deposits Assessment for AY 2009-10
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