ARADHANA ANEJA,GWALIOR V. ITO 2(3), GWALIOR

ITA 144/AGR/2024

AI Insights

The case involves Smt. Aradhna Aneja, who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which confirmed the addition of Rs.16.65 Lacs as income from unexplained cash deposits for the Assessment Year 2017-18. The Income Tax Officer had initially added these amounts to the assessee's income due to insufficient explanation regarding the source of the cash deposits. The assessee argued that the deposits were from the sale of inherited jewellery and small savings. The Tribunal found merit in the assessee's explanation for part of the deposits and adjusted the taxable amount accordingly.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 25468 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Other Referred Cases: S.M.I.L.E. Microfinance Ltd. vs. ACIT (WP (MD) No.2078 of 2020 dated 19-11-2024)
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHAILENDRA SHRIVASTAVA LD.
• Keywords: Capital Gains
• Section: 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No.144/Agr/2024 (िनधाŊरणवषŊ / Assessment Year: 2017-18) Smt. Aradhna Aneja F-243, Harishankarpuram Gwalior 474 002 बनाम/ Vs. ITO 2(3) Gwalior ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AJGPA-9060-R (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/ Appellant by : None ŮȑथŎकीओरसे/Respondent by : Shri Shailendra Shrivastava – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 19-02-2025 घोषणाकीतारीख /Date of Pronouncement : 28.03.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 14-02- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 144 of the Act on 20-11-2019. At the time of hearing, none appeared for assessee. The Ld. Sr. DR pleaded for dismissal of the appeal. 2. In the assessment order, Ld. AO added cash deposits of Rs.16.65 Lacs as the income of the assessee for want of sufficient explanation from the assessee. The Ld. AO also assessed capital gains. During 2 appellate proceedings, it was stated that the cash was sourced out of sale of old jewellery which was inherited from her parents in marriage. The cash was also stated to be sourced out of small savings. However, Ld. CIT(A) rejected the same and confirmed the addition against which the assessee is in further appeal before us. The assessment of capital gains was deleted considering the remand report. 3. During appellate proceedings, it was the submission of the assessee that it had deposited cash of Rs.10 Lacs on 03-09-2016 which was sourced out of sale proceeds of mother’s ancestral gold jewellery as inherited by her. The other deposit of Rs.3.50 Lacs on 14-09-2016 were stated to be accumulation of small savings over the years. We find that this is not a case of cash deposit during demonetization period. Therefore, it could not be held that the assessee was forced to deposit her unaccounted money in the bank account. Considering the social status of the assessee, inheritance of jewellery from parents could not be ruled out. Under these circumstances, we restrict the impugned additions to the extent of Rs.2.65 Lacs and delete the remaining addition of Rs.14 Lacs. The same would be taxable at normal rates and higher rate of tax u/s 115BBE would not apply in terms of decision of Hon’ble High Court of Madras in the case of S.M.I.L.E. Microfinance Ltd. vs. ACIT (WP (MD) No.2078 of 2020 dated 19-11-2024) holding that the revenue is empowered to impose higher rate of tax for the transactions from 01-04- 2017 onwards and not prior to the said cut-off date. 3 4. The appeal stands partly allowed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) Ɋाियक सद˟ /JUDICIAL MEMBER लेखा सद˟ / ACCOUNTANT MEMBER Dated: 28.03.2025 आदेश की Ůितिलिप अŤेिषत / Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT AGRA "