Manju Aggarwal vs. DCIT, Central Circle, Karnal

Income Tax Appellate Tribunal Decision: ITA No. 921/DEL/2022 – Assessment Year 2017-18

Judicial Members: Shri N.K. Billaiya and Shri Kul Bharat

This document presents the judgment delivered by the Income Tax Appellate Tribunal, Delhi Branch, regarding ITA No. 921/DEL/2022 for the Assessment Year 2017-18. The appeal was filed by Smt. Manju Aggarwal, against the Deputy Commissioner of Income Tax (DCIT), Central Circle, Karnal, Haryana.

The core issue revolved around the addition of Rs. 4.50 crores to the taxable income of the appellant under section 69A of the Income Tax Act, 1961. This addition was based on cash deposits made during the demonetization period, which the Assessing Officer (AO) treated as unexplained income.

The appellant, Smt. Manju Aggarwal, contended that the addition was unjustified as the amount was duly declared under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) Scheme, 2016, and all requisite taxes and penalties under the scheme were paid. Despite her compliance with the scheme’s conditions, the AO and CIT(A) upheld the addition under section 69A for the reason of inadequate evidence and non-furnishing of the PMGKY certificate.

The Tribunal, after reviewing the submissions and evidences, noted that the assessee complied with all the conditions of PMGKY Scheme, 2016. It was observed that the amount could not be treated as unexplained under section 69A as the assessee had made a valid declaration under the scheme. Furthermore, it was emphasized that once a valid declaration is made under PMGKY, the disclosed amount cannot be included in the total income of the declarant for any assessment year under the Act.

Therefore, the Tribunal allowed the appeal of Smt. Manju Aggarwal, directing the AO to delete the impugned addition made under section 69A of the Act. The Tribunal’s decision highlighted the sanctity of declarations made under statutory schemes like PMGKY and the protection it offers to the declarants from such additions.

This judgment is a significant precedent for cases involving declarations under the Pradhan Mantri Garib Kalyan Yojana Scheme, 2016, emphasizing the necessity of strict adherence to the procedural requirements of the scheme by both the taxpayers and the revenue authorities.

Manju Aggarwal vs. DCIT, Central Circle, Karnal