This article delves into ITA No. 1895/DEL/2020, involving Ansuya Gosain from Delhi and the Income Tax Officer (ITO), Ward-52(1), New Delhi. The case pertains to the Assessment Year (AY) 2017-18 and was filed on November 23, 2020, with the final order pronounced on May 5, 2022. The crux of the matter revolves around the disallowance related to cash deposits in the assessee’s bank account.
Ansuya Gosain, the appellant, is a widow who received retirement benefits and family pension after the death of her husband. For AY 2017-18, she deposited significant amounts of cash in her bank account, which were challenged by the Income Tax Department under Section 68 of the Income Tax Act. The appellant contended that the deposits were from the provident fund and other retirement benefits received after her husband’s demise and were intended for her daughter’s marriage, which was later postponed.
The appellant’s representative, Sh. Vinay Jain, CA, argued that the cash deposits were from the provident fund and other retirement benefits received from her deceased husband’s accounts. The withdrawals were initially made for her daughter’s marriage, which was postponed, necessitating the redeposit of the funds. The representative presented bank statements and a wedding card as evidence.
The Senior Departmental Representative (DR), Sh. Om Prakash, contended that the assessee failed to satisfactorily explain the source of the cash deposits and upheld the additions made by the Assessing Officer (AO).
The ITAT, led by Shri C.M. Garg, Judicial Member, reviewed the case. The tribunal noted that the assessee provided sufficient evidence, including bank statements showing withdrawals of Rs. 15,00,000 on 27.06.2016 and Rs. 2,00,000 on 05.08.2016, and re-deposits on 22.11.2016 and 27.12.2016, coinciding with the postponement of her daughter’s marriage and the demonetization period.
The ITAT concluded that the assessee successfully demonstrated the source of the cash deposits as being from the provident fund and other retirement benefits of her deceased husband, initially withdrawn for the purpose of her daughter’s marriage. The tribunal directed the AO to delete the addition made on this account, considering the explanation and evidence provided.
The ITAT’s decision highlights the importance of considering the context and supporting evidence provided by the assessee. It underscores that withdrawals and subsequent deposits, when adequately explained, should not be disallowed under Section 68 of the Income Tax Act.
The final order, pronounced on May 5, 2022, reads:
In the result, the appeal is allowed.
Signed by:
(C.M. GARG) Judicial Member
Dated: 05/05/2022
This judgment reinforces the principle that genuine explanations supported by documentary evidence should be duly considered by the tax authorities, ensuring fair and just tax administration.
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