Cash Deposits Made Out Of Withdrawals For The Purpose Of Daughter's Marriage: ITAT Delete Addition

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the assessee had explained that deposits were made out of cash withdrawals made earlier for the purpose of her daughter's marriage.

The bench of Saktijit Dey (Judicial Member) has observed that the explanation furnished by the assessee was believable when the Assessing Officer has not brought on record any contrary material to demonstrate that the assessee must have incurred more expenditure on her daughter's marriage than what was claimed.

The appellant/assessee is a resident individual. For the assessment year under dispute, the assessee had filed her return of income on 05.08.2017, declaring an income of Rs.2,50,000.

In the course of the assessment proceeding, the Assessing Officer noticed that, as per the information available on record, the assessee had deposited cash amounting to Rs.22,01,000 during the demonetization period. Therefore, he called upon the assessee to explain the source of the deposit. In response to the query raised, the assessee submitted that the cash available with her was out of the withdrawals made earlier for the purpose of her daughter's marriage and was again deposited in the bank account.

The Assessing Officer, however, was not convinced by the submissions of the assessee. He observed that the cash withdrawals made by the assessee must have been for the purpose of her daughter's marriage. Therefore, the cash deposits made during the demonetization period could not have been out of earlier withdrawals.

However, partly accepting the assessee's claim, the Assessing Officer added an amount of Rs.12,01,000 under section 69A read with section 115BBE. Though the assessee contested the addition before the Commissioner (Appeals), the addition was sustained.

The assessee contended that she did not incur much expenditure on the marriage as, firstly, it was a love marriage and, secondly, it was performed in a Gurudwara in the presence of close relatives.

The tribunal held that the addition made by the assessing officer was unsustainable.

Case Title: Harjeet Kaur Versus Income Tax Officer

Citation: ITA No.2013/Del/2021

Date: 28.07.2022

Counsel For Appellant: CA Rajiv Bansal

Counsel For Respondent: Sr. DR Om Parkash

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