Ajaykumar Mahadevbhai Patel Vs. The Income Tax Officer, Ward 1(2)(1), Vadodara

Parties Involved

Facts Summary

The assessee, Ajaykumar Mahadevbhai Patel, filed his return of income on 22.07.2017 declaring a total income of ₹2,86,290/-. The case was selected for complete scrutiny under CASS due to high cash receipts and abnormal increase in cash deposits during the year, including during the demonetisation period. The assessee explained that the cash deposits were sourced from a gift of ₹47,00,000/- received from his brother, an NRI, comprising ₹26,00,000/- in cash and ₹21,00,000/- through cheques. The Assessing Officer, however, disbelieved the cash gift during the demonetisation period and made an addition of ₹27,07,000/- under section 69A of the Act. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) who confirmed the addition made by the Assessing Officer.…

Legal Issues

• 1. The Ld.CIT(A) erred in confirming the addition of Rs.27,07,000/- under section 69A of the Act in respect of alleged unexplained cash deposits in the bank account.
• 2. Both, AO & CIT(A), erred in passing the impugned orders without properly appreciating facts of the case, submissions of the assessee and documentary evidences available on record in the correct perspective.
• 3. The Ld.CIT(A) erred in law and on facts of the case in confirming levy of interest u/s.234A/B/C/D of the Act.
• 4. The Ld.CIT(A) erred in law and on facts of the case in confirming initiation of penalty proceedings under section 271AAC(1) of the Act.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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