2023 (3) TMI 214 - AT - Income Tax

Unexplained cash deposit to the bank account - identity of creditor/donor, the capacity of the creditor/donor only to advanced money and genuiness of the transaction, which not at all proved - HELD THAT:- We agree with the contention of the AR that the amount of Rs. 9 lakh depotised by the assessee to his bank account was from the amount withdrawn by the sister of assessee from her bank account on the very same date i.e. 17.02.2011, therefore the source of first deposit is properly explained and copy of PAN and affidavit along with confirmation given by sister of assessee Smt. Jyoti Rathi again confirm the fact that she has having PAN number and bank account which shows her identity, capacity and creditworthiness and genuineness of transaction of gift to his brother that is assessee.

Regarding second deposit from the copy of passbook of father of assessee Shri Ganshyam Dass Rathi reveals that the father of assessee has withdrawn Rs. 5 lakh on 01.03.2011 from his bank account maintained with Corporation Bank and on the very same date the same amount was deposited by the assessee to his bank account.

The copy of bank passbook, Aadhar Card, affidavit and confirmations of gift given by the father of assessee Shri Ganshyam Dass Rathi clearly reveals the identity capacity and creditworthiness and genuineness of transaction of gift from the father to son therefore no addition is called for in the hands of assessee on this account. The copy of ITR acknowledgment of Smt. Jyoti Rathi and copy of ITR acknowledgment of Shri Ganshyam Dass Rathi clearly reveals that these persons filing Income Tax Return with the Department therefore their identity cannot be doubted.

We are inclined to hold that the assessee has successfully demonstrated and substantiated the source of cash deposit to his bank account therefore no addition is called for in this regard therefore grounds of assessee on merits are allowed and the AO is directed to delete the addition. Appeal of the assessee allowed.