ITAT upholds partial addition of 2.00 lakhs for A.Y. 2013-14, assessee's appeal dismissed

The ITAT dismissed the appeal filed by the assessee, upholding the decision of the ld. CIT(A) regarding the partial addition of &8377; 2.00 lakhs for A.Y. 2013-14. The ITAT affirmed the ld. CIT(A)'s conclusion that while the assessee demonstrated identity, creditworthiness, and genuineness of the credit, the failure to explain the specific &8377; 2.00 lakhs transaction led to the partial confirmation of the addition. The judgment was delivered on March 3, 2021, by ITAT Visakhapatnam.

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Issues:
1. Appeal against order u/sec. 250(6) of the Income Tax Act, 1961 for A.Y. 2013-14.
2. Partial confirmation of addition u/sec. 68 of the Act by the ld. CIT(A) regarding cash deposits in bank account.

Analysis:
1. The appeal was filed against the order passed by the ld. CIT(A)-1, Visakhapatnam u/sec. 250(6) of the Income Tax Act, 1961 for the A.Y. 2013-14. The assessee raised amended grounds of appeal challenging the orders passed u/sec. 143(3) of the I.T. Act, claiming they were against the facts of the case and provisions of law. The primary contention was the acceptance of cash deposits in the bank account and the failure to accept the remaining amount based on similar facts and credible evidence.

2. The dispute revolved around the addition of cash deposits made by the assessee in two transactions, totaling &8377; 7.00 lakhs, with the AO treating it as a loan from a specific individual who could not explain the source of the amount. In the appeal before the ld. CIT(A), the assessee demonstrated identity, creditworthiness, and genuineness of the credit, even repaying a portion of the loan. However, the ld. CIT(A) confirmed the addition of &8377; 2.00 lakhs, stating the failure to explain this specific transaction.

3. The ITAT, after hearing both parties and examining the material on record, noted the thorough analysis conducted by the ld. CIT(A) regarding the deposited amount. The ld. CIT(A) acknowledged the discharge of onus by the assessee concerning identity, creditworthiness, and genuineness of the credit. While the assessee had repaid a significant portion of the loan, the failure to explain the &8377; 2.00 lakhs transaction led to the partial confirmation of the addition. Finding no material contrary to the ld. CIT(A)'s conclusion, the ITAT dismissed the appeal, affirming the order under challenge.

4. The ITAT pronounced the order, dismissing the appeal filed by the assessee, thereby upholding the decision of the ld. CIT(A) regarding the partial addition of &8377; 2.00 lakhs. The judgment was delivered on the 3rd of March, 2021, by the ITAT Visakhapatnam, with Member (J) N. K. Choudhry and Member (A) D. S. Sunder Singh presiding over the case.

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