Tribunal allows appeal, deletes additions by AO, citing legitimate sources of income and savings.

The Tribunal allowed the appeal filed by the assessee against the additions made by the AO. The Tribunal found that the cash deposits in the bank account were supported by legitimate sources of income, and the stamp duty payment was made from savings accumulated over the years. The Tribunal directed the AO to delete both additions, emphasizing the importance of considering all relevant evidence and explanations provided by the assessee in such cases.

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Issues involved:
The issues involved in this case are:
1. Addition of cash deposited in bank account treated as unexplained income.
2. Addition of stamp duty paid on purchase of property from alleged unexplained sources.

Issue 1: Addition of cash deposited in bank account:
The assessee appealed against the order of the National Faceless Appeal Centre (NFAC) confirming additions made by the AO. The AO added Rs. 6,74,500 on account of cash deposited in the bank, treating it as unexplained income. The assessee argued that the cash deposits were from legitimate sources, including tuition income, rental income, and interest income. The AO did not consider the cash withdrawals made by the assessee from another bank account, leading to an incorrect addition. The Tribunal found that the cash deposits were supported by the cash flow statement and withdrawals from the State Bank of India, concluding that the addition was unjustified. Therefore, the appeal on this ground was allowed.

Issue 2: Addition of stamp duty paid on property purchase:
The second issue pertained to the addition of Rs. 6 lakhs for stamp duty paid on the purchase of a property. The AO questioned the source of this payment, along with other investments made by the assessee. The assessee explained that the stamp duty amount was saved over the years and was from known sources of income like tuition and interest income. The Tribunal noted that the assessee had a history of filing returns and had provided explanations and evidence for the sources of income. The Tribunal found the explanation plausible and held that the stamp duty payment was not from undisclosed sources. Therefore, the entire addition of Rs. 6 lakhs was directed to be deleted. Consequently, the appeal was allowed on this ground as well.

Conclusion:
In conclusion, the Tribunal allowed the appeal filed by the assessee against the additions made by the AO. The Tribunal found that the cash deposits in the bank account were supported by legitimate sources of income, and the stamp duty payment was made from savings accumulated over the years. The Tribunal directed the AO to delete both additions, emphasizing the importance of considering all relevant evidence and explanations provided by the assessee in such cases.

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