Bank Credits in Housewife’s A/c from NRE Husband Cannot be Treated as Unexplained u/s 69A when Genuineness Proved: ITAT Deletes Addition [Read Order]
The ITAT held that once identity, creditworthiness and genuineness are established, Section 69A addition cannot survive.
![Bank Credits in Housewife’s A/c from NRE Husband Cannot be Treated as Unexplained u/s 69A when Genuineness Proved: ITAT Deletes Addition [Read Order]](https://images.taxscan.in/h-upload/2026/04/30/2135013-itat-chennai.webp "Bank Credits in Housewife’s A/c from NRE Husband Cannot be Treated as Unexplained u/s 69A when Genuineness Proved: ITAT Deletes Addition [Read Order]")
The Income Tax Appellate Tribunal (ITAT) Chennai Bench has deleted an addition of ₹11.55 lakh made under Section 69A of the Income Tax Act, 1961 holding that bank credits in the account of a housewife cannot be treated as unexplained when the assessee has satisfactorily established the nature and source of the funds. The appeal was filed by Smt. Ravikumar Jeeva Kalaivani against...
The Income Tax Appellate Tribunal (ITAT) Chennai Bench has deleted an addition of ₹11.55 lakh made under Section 69A of the Income Tax Act, 1961 holding that bank credits in the account of a housewife cannot be treated as unexplained when the assessee has satisfactorily established the nature and source of the funds.
The appeal was filed by Smt. Ravikumar Jeeva Kalaivani against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the Assessment Year 2019-20.
The assessee a resident individual and housewife, derived her income primarily from interest on fixed deposits. The Assessing Officer (AO) reopened the assessment after receiving information regarding time deposits amounting to ₹1.59 crore and interest income of ₹8.09 lakh. While the AO accepted the explanation regarding the fixed deposits, certain credits aggregating to ₹18.99 lakh in her bank account were questioned and treated as unexplained money under Section 69A.
The CIT(A) offered some relief by reducing the amount by ₹7.44 lakh, but upheld the addition of ₹11.55 lakh pertaining to the amounts paid to Mrs. Shanta Kumari and Mr. Bikash Kumar because they were considered unreliable.
Further, the assessee argued that both payments were genuine and backed by documentary evidence in the form of bank statements as well as the employment and financial ability of the creditors.
According to the assessee Mrs. Shanta Kumari received large deposits from her husband’s NRE account while Mr. Bikash Kumar being employed in Saudi Arabia had salary payments and adequate bank balances.
The Tribunal comprising Aby T. Varkey (Judicial Member) and S.R. Raghunatha (Accountant Member) held that the assessee had discharged the burden of proving the identity, creditworthiness and genuineness of the transactions. It observed that the Revenue failed to rebut the documentary evidence and that the CIT(A)’s finding on lack of creditworthiness was unsupported by material evidence.
Accordingly, the Tribunal directed deletion of the entire ₹11.55 lakh addition and allowed the appeal in favour of the assessee.
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