Gargi Manchanda vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Gargi Manchanda, made cash deposits during the financial year 2011-12 but did not file an Income Tax Return (ITR) for the assessment year 2012-13. Consequently, her case was reopened under section 147 and a notice under section 148 was issued. In response, the assessee filed an ITR declaring a total income of Rs. 1,89,820/-. The Assessing Officer (AO) treated the cash deposit of Rs. 21,91,200/- as unexplained income from undisclosed sources and added it to her income under section 69A of the Act. The assessee appealed before the Commissioner of Income Tax (Appeals) [CIT(A)], explaining that the cash deposits were from past savings, withdrawals, and cash receipts from her retail business. However, the CIT(A) rejected her submissions due to insufficient documentary evidence. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the Assessment order passed by the AO is bad in law.
• 2. Whether the AO erred in law and on facts in making an addition of Rs. 21,91,200/- on account of cash deposits.

Judgment Outcome

Decided in favour of Assessee.

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