Mere time gap between withdrawals and deposits can't be the reason for alleging undisclosed income

Last updated: 22 September 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT) has ruled that a mere time gap between cash withdrawals and subsequent deposits into a bank account cannot be the sole reason for alleging undisclosed income. In a case involving Smt. Krishna Agarwal, the Assessing Officer treated cash deposits of Rs. 68,95,000/- as unexplained income. However, the ITAT found the appellant's explanation, supported by bank statements and documentary evidence, to be reasonable. The tribunal noted that there was no evidence to suggest the withdrawn funds had been used elsewhere, leading to the deletion of the addition.

Court :
ITAT, Jodhpur Bench

Brief :
In Smt. Krishna Agarwal v. The ITO, Ward-1, Pali [ITA. No. 53/JODH/2021 A.Y. 2017-2018 dated September 07, 2021], Smt. Krishna Agarwal ("the Appellant") filed an appeal against Order of Ld. CIT (A), NFAC, Delhi dated July 31, 2021 pertaining to Assessment Year ("AY") 2017-18.

Citation :
ITA. No. 53/JODH/2021 A.Y. 2017-2018 dated September 07, 2021

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Bimal Jain
Published in Income Tax
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