2025 (5) TMI 1305 - AT - Income Tax

Addition of cash deposited to the Bank u/s 69 r/w Section 115BBE - HELD THAT - Revenue could not dispute the source of cash deposits however supported the order passed by the Lower Authorities. It is seen from the CIT(A) s order the Ld. CIT(A) deleted the addition based on the explanation namely deposit of own savings fund by the assessee but upheld the addition partly as not explained properly. Whereas in the reconciliation statement the assessee has demonstrated the source out of cash sales of Rs. 2 10, 500/- and cash withdrawal from same bank of Rs. 9, 60, 000/-. Therefore the addition confirmed by the Ld. CIT(A) is directed to be deleted. Appeal filed by the Assessee is hereby allowed.

Summary

The Appellate Tribunal (ITAT Ahmedabad) heard an appeal filed by the assessee against the Commissioner of Income Tax (Appeals) order dated 14.08.2024, arising from reassessment under section 147 of the Income Tax Act, 1961, for AY 2013-14. The issue concerned additions made by the Assessing Officer under section 69A and section 115BBE relating to unexplained cash deposits of Rs. 11,02,000/- and purchase of gold.The CIT(A) confirmed the addition on cash deposits but deleted the addition related to gold purchases. The assessee challenged the confirmation of the cash deposit addition, submitting a reconciliation statement demonstrating the source of cash deposits through cash sales and bank withdrawals.The Revenue did not dispute the source but supported the lower authorities' order. The Tribunal noted that the CIT(A) had partly allowed the appeal by deleting Rs. 2,86,527/- addition but upheld Rs. 11,02,000/- addition despite the reconciliation evidence.The Tribunal held that since the assessee adequately demonstrated the source of cash deposits, "the addition confirmed by the Ld. CIT(A) is directed to be deleted." Accordingly, the appeal was allowed.