Smt. Bimla Kaur Multani vs. ITO, Ward Dasuya

Parties Involved

Facts Summary

The assessee, Smt. Bimla Kaur Multani, deposited cash in her bank account amounting to Rs. 11,64,180/- during FY 2016-17, out of which Rs. 10,25,000/- was deposited during the demonetization period. No return of income was filed in response to the notice issued by the Assessing Officer (AO) under section 142(1) of the Income Tax Act 1961. The assessee claimed that the source of the cash deposit was agricultural income from her and her husband's agricultural land. She provided copies of Fard Jamabandi as documentary evidence. The AO was not satisfied with the explanation and completed the assessment on a total income of Rs. 22,92,406/-, including additions of Rs. 8,84,850/- on unexplained credits, Rs. 1,93,376/- on interest income, and Rs. 1,50,000/- on expenses. The matter was carried in first appeal, and the Commissioner of Income Tax (Appeals) deleted the additions on bank credit and house expenses but sustained the remaining additions. The assessee appealed to the Tribunal on various grounds.…

Legal Issues

• 1. Whether the order passed by the Commissioner of Income Tax (Appeals) is against the law and facts of the case.
• 2. Whether the Commissioner of Income Tax (Appeals) erred in law and on facts in confirming the action of the Assessing Officer.
• 3. Addition of Rs. 10,64,180/- u/s 69A cash deposit in bank during demonetization period.
• 4. Addition of bank interest Rs.1,93,376/-.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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