ITAT deletes Income Tax Addition: Wife’s PIN money and Family savings not Black Money

ITAT deletes Income Tax Addition: Wife’s PIN money and Family savings not Black Money

The Income Tax Appellate Tribunal (ITAT), Ahmedabad, has recently deleted an addition of Rs 3,38,000 made to the income of an assessee, who claimed that the cash payments were from domestic savings.

The main dispute was about the addition of Rs 11,38,000 made by the Assessing Officer under Section 69. This included Rs 8,00,000 paid to the builder by cheque and Rs 3,38,000 paid in cash. The assessee, Jayshriben Modi, filed an appeal before the CIT(A) to challenge these additions. However, the Ld. CIT(A) confirmed the additions made by the AO. Aggrieved by this order, the assessee filed an appeal before the Income Tax Appellate Tribunal (ITAT), Ahmedabad.

The assessee submitted that the cash payment was made from the domestic savings, wife’s pin money, and contributions from parents and relatives. The assessee argued that the order passed by the AO and CIT(A) is invalid, and the authorities ignored the submissions made by the assessee.

The ITAT observed that the sources of the cheque payments made by the assessee were not in dispute, but the cash payment of Rs 3,38,000 was to be analysed. Since the assessee already explained about the cash payments that were from domestic savings and contributions from relatives, the ITAT believed that the taxpayer’s explanation was reasonable, and the addition of Rs 3,38,000, made by the AO was not justified. Therefore, the additions were deleted by the ITAT, and the appeal was allowed.