Gufarani Vs. ITO

Parties Involved

Facts Summary

The appeal in ITA No. 178/AGR/2025 for AY 2017-18 arises from the order of the National Faceless Appeal Centre (NFAC), Delhi, against the order of assessment passed by the Assessing Officer (AO) under section 144 of the Income-tax Act, 1961. The assessee, an agriculturalist, had deposited Rs 12,85,000/- in his bank account during the demonetization period. The AO issued a notice under section 142(1) of the Act, but the assessee did not file an income tax return. The AO completed the assessment by adding Rs 10,85,000/- as unexplained cash under section 69A read with section 115BBE of the Act. The Commissioner of Income Tax (Appeals) (CITA) confirmed the addition. The assessee explained that the cash deposits were from an opening balance, a gift from his wife, agricultural income, and sale of popular trees. The CITA rejected the sources except for the opening balance. The assessee submitted documents to support his claims, which were accepted by the tribunal.…

Legal Issues

• 1. Whether the CITA was justified in confirming the addition made in the sum of Rs 10,85,000/- on account of cash deposits made in the bank account.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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