Fake Bank Account made Using ID Proof of Assessee: ITAT deletes Addition [Read Order]

In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Delhi bench has deleted the addition based on the cash deposit made in a fake bank account created using the id proof of the assessee.

While challenging the income tax addition made by the department, the assessee contended that the Savings bank account No.623010014000 in the ING Vaisya Bank Ltd., Siddhartha Colony, Muzaffar Nagar branch does not belong to her and it was not opened in the name of her, Smt. Asha Saini, but was opened in the name of Smt. Asha Rani, a resident of 677, Laddhawala, Muzaffar Nagar.

The department contended that there is no iota of any evidence that the amount deposited in the impugned bank account was ever withdrawn or utilized by the appellant or diverted to the other bank account of any relative, person, friend or family member.

Shri Chandra Mohan Garg, Judicial Member observed that “I decline to accept contention of the authorities below that the impugned bank account with ING Vaisya Bank Ltd., belongs to the assessee and it was opened by the assessee by using her identity and residential proof. Therefore, I am compelled to hold that no addition can be made in the hands of the assessee on the instance of such bank account which has been disowned by the appellant.”

Quashing the assessment order, the Tribunal added that “It is pertinent to mention that the bank account has been opened in the name of Smt. Asha Rani whereas the name of present appellant is Smt. Asha Saini. So far as similarity in the address is concerned, when the identity and residential proof of the assessee has been misused by the culprits, then it is obvious that the actual address would match with the address mentioned in the bank documents, but this fact does not wipe out the other substantial evidences placed on the record by the appellant. Therefore, addition made by the Assessing Officer and confirmed by the ld. CIT (Appeals) stands deleted.”

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