ITAT Delhi deleted addition u/s 69A towards unexplained cash deposits in the bank account as AO could not bring any adverse material to treat as unexplained

 

Here is an interesting case on addition U/s 69A.

The case detail is as under:

ITAT DELHI _ PREETI BHARDWAJ VERSUS INCOME-TAX OFFICER, WARD-29 (3) , NOIDA.,.- ITA No. 78/DEL/2024
Dated.- March 22, 2024

Let us have a short overview of the case:

Facts The Appellant is a senior citizen and has filed the ITR declaring an income of Rs. 20,1,640/(- u)/h Capital gains and Other sources.

Subsequently, the case of the appellant was selected for limited scrutiny for verification of payment of tax in cash and thereafter, an assessment order dated / 12/2019 u/s 143(3) of the Act was passed after making the aggregate addition of Rs. 29, 60000 / (- o) * n the alleged ground of unexplained money u/s 69A of the Income Tax Act, 1961 being Rs. 16,10,000/-as cash deposits in the bank account and Rs. 13,50,000/- as tax paid through cash.

The Appellant against the said Assessment Order filed an appeal before the CIT(A), New Delhi who vide order dated 15/12 / 2023 has upheld the addition made in the Assessment order.

Held before the lower authorities the assessee had provided source of cash deposits in the bank account. The Revenue has not brought any material to controvert the claim of the assessee that the assessee was having cash in hand to make the impugned deposits. In the light of the case laws relied by the learned counsel for the assessee, I am of the considered view that when the assessee has provided the source of cash deposits being cash withdrawals, in my view, the AO without bringing adverse material ought not have treated the same as unexplained. Therefore, I hereby direct the AO to delete the impugned addition. Grounds raised in this appeal are allowed.

Cases relied upon
Jaya Aggarwal vs ITO [2018] 92 taxmann.com 108 (Delhi HC)

Om Parkash Nahar vs ITO [2022] 135 taxmann.com 377 (Delhi – Trib.)

ITO vs Deepali Sehgal [ITA No 5660/Del/2012] (Delhi Trib.)

Arihant Associates vs ITO [2024] 158 taxmann.com 7 (Raipur Trib.) (20-09-2023]

Abdul Razaak vs ITO [2023] 153 taxmann.com 180 (Chennai)

Sudhirbhai Pravinkant Thaker vs ITO [2017] 88 taxmann.com 382 (Ahmedabad – Trib.)

The copy of the order is as under:

1711093691-ITA 78 of 2024 Preeti Bhardwaj 1