DCIT, CC-4(4), Kolkata Vs. Mira Bibi

Parties Involved

Facts Summary

The case involves the reopening of the assessment of Mira Bibi for the assessment year 2017-18 under section 148 of the Income-tax Act, 1961 due to discrepancies between her income return and substantial cash deposits and withdrawals. During the assessment, the Assessing Officer (AO) noted that Mira Bibi received cash gifts totaling ₹1,21,00,000 from two donors, Mojibur Rahaman Biswas and Latifuddin, who are her brothers-in-law. Despite the assessee providing confirmations, financial statements, and other documents to substantiate the gifts, the AO added the gift amount to her income under section 68 of the Act, treating it as unexplained cash credit. The Commissioner of Income Tax (Appeals) [CIT(A)] subsequently deleted this addition, holding that the gifts were genuine and exempt under section 56(2)(vii) of the Act as they were received from relatives.…

Legal Issues

• 1. Whether the addition of ₹1,21,00,000 as unexplained cash credit under section 68 of the Act was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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