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2023 (7) TMI 274 - AT - Income TaxAddition u/s 68 - Cash deposited in Bank - Unexplained deposits - As submitted assessee has re-deposited cash out of preceding withdrawals coupled with the inability of assessee to earn any income from any source (except pension) - HELD THAT:- The explanation offered by Ld. AR from assessee’s side with regard to the source of deposits are satisfactory and therefore no addition could be made on account of unexplained cash. As rightly contended by Ld. AR that the withdrawals of cash from the bank a/c prior to deposits is not disputed by revenue. Notably, the assessee has also given a convincing explanation for the reason behind cash withdrawals and re-deposit in bank a/c, which is the medical exigencies caused by Bhopal Gas Tragedy. If the sources of deposits are explained from prior cash withdrawals and the department has not disputed prior cash withdrawals, subsequent deposits cannot be treated as explained and no addition could be made. Assessee re-circulated those moneys by way of deposits, withdrawals and redeposits in the Bank A/c from time to time and the deposits/withdrawals made in current year also have the same genesis but since the assessee is a medical challenged retired employee, a complete track of the same could not be maintained/explained. We find weightage in this submission of AR. Also the assessee is unfit to earn any income due to several diseases and the only source of income is pension. Thus the assessee has satisfactorily explained the source of cash deposits - Decided in favour of assessee.
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