2025 (6) TMI 1199 - AT - Income Tax

Addition u/s 68 - unexplained cash deposits in his credit card account - HELD THAT - Assesee has been able to corroborate source of cash deposits in his credit card account. Hence no addition on this account is called for. Ergo addition is directed to be deleted. Assessee appeal allowed.

Summary

The Appellate Tribunal (ITAT Delhi) allowed the assessee's appeal against the CIT(A)'s order for AY 2017-18, which had upheld an addition of Rs. 5,52,600 under section 68 of the Income Tax Act as unexplained cash credits. The addition related to cash deposits of Rs. 5,44,800 in the assessee's credit card account. The assessee, a salaried individual, demonstrated that these deposits were made by M/s. Krishna Construction and M/s. Stat Elecom Facilities as reimbursements for business expenditures incurred by the assessee on their behalf, supported by confirmations from both entities. The Tribunal held that the assessee "has been able to corroborate source of cash deposits," and therefore "no addition on this account is called for." Consequently, the Tribunal reversed the CIT(A)'s findings and deleted the addition.