Vikas Chugh Vs ACIT (OSD), Karnal

Parties Involved

Facts Summary

The assessee, Vikas Chugh, filed a return of income declaring income of Rs.2,69,210/-. His case was selected for scrutiny, and mandatory notices were issued. The case was examined regarding the source of a deposit of Rs.52.26 lakhs in his ICICI Bank account. The assessee claimed that the deposits were from payments received from customers for general insurance policies, which he then transferred to Matushree Insurance Consultants Pvt. Ltd. However, the Assessing Officer (AO) was not satisfied with this explanation, finding it vague and baseless due to lack of supporting evidence. The AO added Rs.52,26,000/- to the assessee's taxable income as unexplained cash deposits. The Commissioner of Income-tax (Appeals) upheld this addition. The assessee appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the cash deposits of Rs.52.26 lakhs in the assessee's bank account were adequately explained.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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