Denial on Claim of Past Savings will not sustainable when relevant details being furnished: ITAT [Read Order]

On hearing the appeal against the order of CIT(A), the Varanasi bench of the Income Tax Appellate Tribunal (ITAT) held that denial of the claim of past savings will not sustainable when relevant details being furnished.

The assessee, Surendra Nath Singh derives income from the legal profession and agriculture. The Assessing Officer issued a notice under section 148 of the Income Tax Act based on information received from Income Tax Officer 3(5), Lucknow, regarding the cash deposit of Rs. 15,03,900/- in the saving bank account of his son.

The assessee explained the deposit in the bank account of his son to purchase an apartment in Lucknow and it was from past savings from his professional income as well as agricultural income and the balance amount of Rs. 7,00,000/- was explained by the assessee as a loan taken from the relatives. The Assessing Officer has estimated the past savings at Rs. 6,00,000/- instead of the claim of the assessee at Rs. 8,03,900/-

It was evident from the order of the Assessing Officer that the AO had estimated the without any basis at Rs. 6,00,000/- as against the claim of Rs. 9,03,900/- as arbitrary and unjustified. It was observed that in the absence of any contrary material or fact brought by the Assessing Officer, the denial of this claim of past savings and restricting the same to Rs. 6,00,000/- as against Rs. 8,03,900/- was not justified.

Shri. Vijay Pal Rao, judicial member observed that the additions sustained by the CIT(A) on the ground that no evidence could be furnished, are not justified and deleted the addition made by the Assessing Officer and confirmed by the CIT(A).

The Appellant was represented by Sh. Apramay Gabhawala and the Respondent were represented by Sh. A.K. Singh.

To Read the full text of the Order CLICK HERE

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