2011 (6) TMI 988 - AT - Income Tax

Summary

Issues involved: Determination of unexplained cash deposits in bank account for assessment year 2006-07.

Facts of the case:
The assessee made cash deposits totaling &8377; 3,15,000/- in her bank account, claiming it was from past savings out of her income. The Assessing Officer (A.O.) noted small cash transactions in the bank account, indicating no surplus cash in earlier years. The A.O. added &8377; 3,15,000/- as undisclosed income. The CIT(A) reduced the addition to &8377; 1,97,825/-, considering opening cash and current year's net income.

Decision:
The Appellate Tribunal observed that the cash flow statements filed by the assessee were based on income returned and household expenses. The Tribunal found no justification in sustaining the addition of &8377; 1,97,825/- by the CIT(A), as there was no evidence of investment elsewhere. Consequently, the Tribunal deleted the addition of &8377; 1,97,825/- and allowed the appeal.

Significant Phrases:
- "unexplained cash deposits in bank account"
- "alleged unexplained cash deposits"
- "discharged her burden of showing the source of the cash"
- "undisclosed income"
- "cash flow statements"
- "benefit of opening cash in hand"
- "cash accumulation"
- "investment elsewhere"

Judges:
- Shri H.L. Karwa, Vice President
- Shri Mehar Singh, Accountant Member