Neha Wadhwa vs. ITO

Parties Involved

Facts Summary

Neha Wadhwa, the assessee, filed an appeal against the order of the Commissioner of Income Tax (Appeals) dated 02/07/2024, which confirmed the addition of Rs. 8,73,500/- under section 68 of the Income Tax Act, 1961. The assessee had claimed that the amount was receivable from sundry debtors as on 31.03.2015 (Assessment Year 2015-16) and was received in the Financial Year 2015-16 (Assessment Year 2016-17). The assessee had also claimed that the amount was repaid by the debtors and hence, it should not be considered as unexplained cash credit. The Tribunal held that the amount was an opening balance of the advances of the earlier year and could not be considered as income of the current year merely because the assessee failed to give complete details of the pawning debtors outstanding as on 31.03.2015.…

Legal Issues

• 1. Whether the amount outstanding as on 31.03.2015 can be considered as unexplained credit in the year under consideration?
• 2. Whether the assessee has discharged the onus of proving the source of the amount received?

Judgment Outcome

Decided in favour of Assessee.

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