The Income Tax Appellate Tribunal (ITAT), Ahmedabad deleted addition of Six Lakhs as there was satisfactory evidence as to source of cash deposit.
The sole issue in the present appeal relates to the addition made to the income of the assessee, Bipinchandra Purshotamdas Patel on account of unexplained cash deposits of Rs.6.00 lakhs in bank account. The said cash deposit was made in the bank account of the assessee maintained with Bank of India.
The fact being that the Assessing Officer (AO) had noted cash deposits in the bank account of the assessee to the tune of Rs.16,73,000/- and in the absence of satisfactory explanation, he added entire cash deposits to the income of the assessee. The CIT(A) noted that the assessee had shown business receipts to the tune of Rs.11,69,500/- from his business in M/s.Krunal Motors and noted, from the details furnished by the assessee before him, that cash deposits to the said extent were attributable to the same.
For the remaining, however, the CIT(A) found that the assessee had attributed the cash deposits to the sale consideration received from a sale of land jointly owned by the assessee with his family members, his share in the same being Rs.7.50 lakhs which was stated to have been deposited – Rs.1,50,000/- in Bank of India and Rs.6,00,000/- in Dena Bank account of his brother and this Rs.6.00 lakhs was withdrawn by his brother, and given to him in cash which in turn he deposited in his Bank of India account. The CIT(A) had rejected this explanation of the assessee stating that the assessee had been unable to substantiate the same.
A Bench consisting of Annapurna Gupta, Accountant Member and Suchitra Kamble, Judicial Member observed that “The entire evidences, as noted above by us reasonably and satisfactorily demonstrating the flow of money to the assessee in cash from the proceeds received of land sold, we see no reason to disbelieve the assesses explanation of the source of cash deposit in bank of Rs. 6lacs being attributable to his share in land sold by family received in cash from his brother. Addition of Rs.6,00,000/- on account of unexplained cash deposits is accordingly directed to be deleted.”
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