TaxTMI 
TaxTMI 
2026 (8) TMI 1810
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....0 of the Income Tax Act, 1961 ["the Act", for short] for the assessment years 2021-22 & 2022-23 respectively on the following grounds of appeals:- GROUNDS OF APPEAL in ITA No. 364/GTY/2025 (A.Y. 2021-22) 1) For that the Ld. CIT(A) erred in law and in facts in upholding the validity of the assessment order passed in gross violation of the law. 2) For that the Ld. CIT(A) erred in law and in facts in upholding the assessment order making additions of Rs. 41,30,348/- as unexplained cash deposits u/s. 69A on the only ground that in the absence of books of accounts the assessee could not have satisfactorily explained the source of cash deposited in her bank accounts. 3) For that the Ld. CIT(A) erred in law in h....
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....mon order. We are taking up first appeal in ITA No.364/GTY/2025 for the assessment year 2021-22 and decision will apply mutatis mutandis in other appeals too. 2. Briefly stated, the facts of the case are that the assessee filed a return of income on 26.10.2021, declaring the income at NIL. The case was selected for scrutiny, accordingly notices u/s. 143(2) of the Act was issued. Subsequently, various other statutory notices u/s. 142(1) etc. were also issued to the assessee. In response to these notices, the assessee furnished replies from time to time, along with details including a copy of the SC Certificate, Bank Statements, Permanent Residence Certificate, Trade Licence, Computation of Income, copy of GST Registration Certificate, GST....
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..... 26,122/- as Interest on IT refund) as exempt income u/s. 10(26) of the Act. Since she is a member of Scheduled Tribe and residing in the state of Arunachal Pradesh and earning all her income in the said State. This fact has been accepted beyond any doubt by the Assessing Officer. The onus of proving the applicability of any exemption provision has been fully discharged by the assessee to the full satisfaction of the Assessing Officer. The Assessing Officer has made the addition of Rs. 41,30,348/- on account of unexplained deposit of cash in the Bank accounts of the assessee during the year. On one hand in Para 5 of his order the Assessing Officer himself has enquired about the veracity of withdrawals made during the financial year 2019-20....
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....blish the valid source of the cash deposits before the Lower Authorities. The books of accounts were not submitted so that the AO would be satisfied. Therefore, the case laws cited during the initial proceedings are not applicable to the present facts, and requested that the orders of the Lower Authorities may be upheld. 6. Considering the rival submissions and perused the material available on record. The dispute pertains to an addition of Rs. 41,31,348/- made by the Assessing Officer u/s. 69A of the Act due to the lack of a proper explanation from the assessee regarding the valid source of the cash deposited into her bank account. During the impugned assessment year, the assessee deposited cash totalling of Rs. 54,20,000/-. Out of this....
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....tion u/s. 10(26) of the Act as per the income computation but to be qualified for exemption u/s. 10(26) of the Act, there should be a valid source in the eyes of law as per the provisions of the Income Tax Act to qualify the exemption u/s. 10(26) of the Act. However, the assessee could not establish a valid source of cash deposits. The books of accounts were not produced. In view of this the income which cannot be considered for the eligibility of the exemption. During the course of the assessment proceedings, the Assessing Officer noted that the assessee has not produced the books of account, and merely producing bank statements cannot be treated as producing books of account to justify the source of income. Firstly, the assessee has to pr....