2025 (8) TMI 1587 - AT - Income Tax

Appeal partly allowed with limited s.69A addition for disputed cash deposits; lump-sum Rs.86,500, not precedent

ITAT DELHI - AT partly allowed the appeal against an addition under s. 69A, finding the assessee's consistent claim that cash deposits arose from ... Addition u/s 69A - addition of “peak” credit - difference between assessee’s cash deposit and his cash withdrawal - HELD THAT:- The assessee’s stand from day one all along is that his joint family owns and cultivates 90 bighas of agricultural lands, and therefore, it was cash receipts of the agriculture produce only which forms source of the cash deposit herein. He has admittedly not filed other relevant details of the land in his name or his share; as the case may be. The Revenue could hardly dispute that even otherwise also, possibility of some past savings accumulations etc. could not be altogether ruled out. Therefore, deem it appropriate in these peculiar facts that a lump sum addition of Rs. 86,500/- in the given facts would be just and proper with a rider that the same shall not be treated as a precedent. Assessee’s appeal is partly allowed. Appeal under proceedings u/s 143(3) read with section 147 of the Income-tax Act, 1961, against CIT(A) order. Proceedings were conducted ex parte for the assessee. Both lower authorities had added a 'peak' credit amount of Rs. 5,86,500, being the difference between cash deposit Rs. 11,50,200 and cash withdrawal Rs. 6,22,000, as unexplained u/s 69A. Assessee contended the cash arose from joint family agricultural receipts (90 bighas); he did not file documentary proof of land ownership or share. Revenue conceded that past savings could not be ruled out. On these peculiar facts the Tribunal considered it appropriate to reduce the addition and directed a lump-sum addition of Rs. 86,500, noting this decision 'shall not be treated as a precedent.' Net relief to the assessee of Rs. 5,00,000; necessary computation to follow. Appeal partly allowed. Order pronounced 09.01.2025.