2018 (3) TMI 136 - AT - Income Tax

Addition u/s.69A - unexplained cash - Held that - Admittedly, there were cash deposits of ₹ 10,08,900/- in the bank account of the appellant. The source of major part of cash deposits i.e. ₹ 8,50,000/- has been explained as withdrawals from the bank account of unmarried working daughter. In order to verify, this claim of the appellant, appellant was directed by the officer of the department to submit bank account copies of the daughter for three years. On verification of the entries in her bank account, it was noticed that she has withdrawn entire amount of cash through ATM facility. there were frequent small withdrawal ranging into few thousand rupees. Sometimes there are many cash withdrawal in the single day. Appellant had not submitted the detail of income earned by her daughter. We just fail to understand as stated by the ld. AR that appellant and her daughter both are working in bank, if any person is working in the bank why they will keep such a huge amount in cash at home. Therefore, this kind of explanation is hard to believe. Ld. AR stated that appellant s sister has given her cash of ₹ 54,054/- for charity work and further stated that she donated ₹ 72,072/- through account payee cheque No.447453 dated 29/09/2010. We can see that same is reflecting in the bank statement of the appellant. For rest of the amount appellant could not give any plausible explanation to prove her case. Thus we would like to give relief of ₹ 54,054/-, which was given by sisters of the appellant for charity work and remaining addition is confirmed u/s.69A. - Decided partly in favour of assessee

Summary

Issues Involved:
1. Addition u/s.69A of the Act for A.Y. 2011-12
2. Delay in filing the appeal
3. Levying interest u/s 234A/B/C/D of the Act
4. Initiating penalty u/s.271(1)(c) of the Act

Analysis:

1. Addition u/s.69A of the Act for A.Y. 2011-12: The case involved an appeal by the assessee against the order confirming the addition of &8377; 6,79,900/- u/s.69A of the Act for A.Y. 2011-12. The assessee explained that the cash deposits were sourced from family funds, including gifts given to a handicapped son. However, the AO was not satisfied and made the addition. The Appellate Tribunal noted the explanations provided but found discrepancies in the daughter's bank account withdrawals and the cash deposits in the appellant's account. Relief was granted for a specific amount given for charity, while the remaining addition was confirmed u/s.69A.

2. Delay in filing the appeal: There was a delay of 127 days in filing the appeal, which the appellant supported with an affidavit. The Tribunal agreed with the explanation provided and condoned the delay, allowing the appeal to proceed.

3. Levying interest u/s 234A/B/C/D of the Act: The Tribunal directed the AO to calculate the interest as per law, addressing the issue raised regarding the levying of interest under various sections of the Act.

4. Initiating penalty u/s.271(1)(c) of the Act: The Tribunal mentioned that for the remaining amount above the relief granted, the AO would take necessary action as per law concerning the initiation of penalty u/s.271(1)(c) of the Act.

In conclusion, the appeal filed by the assessee was partly allowed, with relief granted for a specific amount and the remaining addition confirmed u/s.69A. The Tribunal addressed the delay in filing the appeal, directed the calculation of interest as per law, and mentioned the necessary action to be taken for the remaining amount regarding the initiation of penalty. The judgment was pronounced on 22/01/2018 by the Appellate Tribunal ITAT Ahmedabad.