­­ITAT Deletes Addition made by AO on Ground of Joint Account Income cannot be Considered as Unexplained Money u/s 69A of Income Tax Act [Read Order]

The Bangalore bench of the Income Tax Appellate Tribunal (ITAT) deleted an addition made by the assessing officer on the ground of joint account income does not considered as unexplained income under section 69A of the Income Tax Act,1961. 

Rammohan Kordale, the appellant assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) for confirming the addition made by the assessing officer which was a transfer from the assessee's bank account and within the same bank on the facts and circumstances of the case. 

Ravishankar, the counsel for the assessee contended that the amount transferred from the bank account was the assessee’s own account with his wife and it was the opening balance amount. 

It was further submitted that the addition made by the assessing officer as unexplained income was not unexplained and it was the amount contained in the joint account of the assessee and his wife. 

Priyadarshini Baseganni, the counsel for the revenue relied on the decisions made by the lower authorities and contended that the assessee had not furnished a source of the income which was transferred from the bank account during the assessment proceedings. 

The bench observed that when the amount had been transferred to the account which was also the assessee’s joint account with the assessee’s wife and it cannot be considered as unexplained money under section 69A of the Income Tax Act and the assessee explained the sources as the opening balance standing in the assessee’s account. 

The two-member bench comprising Chandra Poojari (Accountant) and Beena Pillai (Judicial) held that the addition made under section 69A of the Income Tax Act was deleted while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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