Tempa Tsering vs. Income Tax Officer Ward North Lakhimpur

Parties Involved

Facts Summary

The assessee filed a return of income declaring income of Rs. 37,92,956/- which includes interest income received on FDRs and interest received on income tax refund. The entire income was claimed as exempted income under section 57 of the Act and further claimed exemption under section 10(26) of the Act amounting to Rs. 50,28,970. The assessee deposited cash in his bank account of Rs. 6,28,22,180/- and submitted that he is running a petrol pump named “M/s.Himalaya Filling Station” which does not belong to him in terms of ownership and it was operating the said business under a power of attorney arrangement. The Assessing Officer made an addition under section 69(A) of the Act for not substantiating the actual source of cash deposit with documentary evidence. The assessee filed an appeal before the Ld. CIT(A) which was dismissed. The assessee is now in appeal before the ITAT.…

Legal Issues

• 1. Whether the Ld. A.O erred in treating total bank deposits of Rs 6,28,22,180.00 as unexplained money u/s 69A?
• 2. Whether the Ld. A.O erred in rejecting the claim of exemption u/s 10(26) of IT Act 1961?

Judgment Outcome

Decided in favour of Assessee.

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