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of <h1>Appeal partly allowed by ITAT, adjustments made for property purchase, credit card payment, cash deposits. Decision on 30.06.2021.</h1> <h3>Krishna Nandan Versus ITO, Ward - 43 (4)</h3> Krishna Nandan Versus ITO, Ward - 43 (4) - TMI Issues:1. Addition of cash deposits in the bank2. Addition of credit card payment3. Purchase of property in the name of a legal personAnalysis:1. Cash Deposits in the Bank:The AO observed cash deposits of &8377; 14.21 lacs in Kotak Mahindra Bank and added this amount to the assessee's total income under undisclosed sources. However, the ITAT Delhi noted that the bank statements indicated the cash deposits were made with a specific nomenclature of 'cash deposit @ Dwarka.' The AO's decision lacked specific findings on these entries, and neither the AO nor the CIT(A) verified the cash withdrawals. Given the lack of clarity and the ex-Army background of the assessee, the ITAT directed the AO to limit the addition to &8377; 3.5 lacs, providing partial relief to the assessee.2. Credit Card Payment:An amount of &8377; 3,38,210/- related to credit card payments was added to the assessee's income due to unexplained sources. However, since the ITAT decided to restrict the cash deposit addition to &8377; 3.5 lacs, they directed that this restricted amount should be considered as the source for the credit card payment. Consequently, the ITAT directed the AO to delete the addition of &8377; 3,38,210/- related to credit card payments.3. Purchase of Property in the Name of a Legal Person:The property purchase of &8377; 41 lacs was questioned by the AO, but the ITAT found that the property was acquired by M/s. Nagarka Property and Finance Private Limited through its director, Brigadier Krishna Nandan. As the property was not bought in the assessee's name, the ITAT ruled that the addition made by the AO was unjustified. Supported by bank statements and purchase documents, the ITAT directed the deletion of the &8377; 41 lacs addition related to the property purchase.In conclusion, the ITAT partially allowed the appeal filed by the assessee, directing the deletion of additions made on account of the property purchase and credit card payment while limiting the addition related to cash deposits. The decision was announced on 30.06.2021 in the presence of both parties' representatives.
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