BABLI KALGOTRA D/O PRITAM CHAND WARD NO 3 KATHUA JAMMU AND KASHMIR 184101,KATHUA V. INCOME TAX OFFICER WARD KATHUA INCOME TAX OFFICE HERIAN PATTAN KATHUA JAMMU AND KASHMIR, DISTT KATHUA JAMMU KASHMIR

ITA 30/ASR/2025

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The case involves Ms. Babli Kalgotra, who did not initially file a return of income for the Assessment Year 2018-19. Following information about her sale of immovable property, proceedings under section 148A were initiated. The Assessing Officer (AO) later reopened the case and added Rs.3.52 Lacs to her income, attributing it to unexplained cash deposits. The Commissioner of Income Tax (Appeals) upheld this addition, leading Ms. Kalgotra to appeal to the Income Tax Appellate Tribunal. The Tribunal, after considering the explanations provided by Ms. Kalgotra regarding the sources of the cash deposits, ruled in her favor, allowing her appeal and setting aside the addition made by the AO.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717184 (ITAT-AMRITSAR)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Appeal Filed On: 09-01-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHARAN DASS LD.
• Assessee Lawyers: P.N. ARORA LD
• Keywords: Gift
• Section: 147; 148

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL ‘DB’, AMRITSAR BENCH, AMRITSAR HYBRID HEARING BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI UDAYAN DAS GUPTA, JM आयकर अपील सं./ ITA No. 30/ASR/2025 (िनधाŊरण वषŊ / Assessment Year: 2018-19) Ms. Babli Kalgotra D/o Pritam Chand Ward No.3, Kathua Jammu and Kashmir 184101. बनाम/ Vs. ITO Ward Kathua Income Tax Office Herian Pattan Kathua Jammu and Kashmir-184101 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. AZEPD-1302-R (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎकीओरसे/Appellant by : Shri P.N. Arora (Advocate) –Ld.AR ŮȑथŎकीओरसे/Respondent by : Sh. Charan Dass (Addl. CIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 05-08-2025 घोषणाकीतारीख /Date of Pronouncement : 21-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of an order of Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 13-12- 2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s. 144 of the Act on 03-03-2023. The Ld. AR advanced legal arguments as well as grounds on merits which have Printed from counselvise.com 2 been controverted by Ld. Sr. DR. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. The assessee did not file return of income for this year. Pursuant to receipt of information of sale of certain immovable property by the assessee, 148A proceedings were initiated against the assessee. It transpired that the property was purchased for Rs.15.68 Lacs and the assessee’s share therein to the extent of 1/4th was Rs.3.92 Lacs. The amount was received through cheque. The assessee deposited cash of Rs.3.30 Lacs also in her savings bank account which was attributed to past savings and personal income. Since the income was below taxable limit, no return was required to be filed. However, Ld. AO rejected the explanation vide order under clause (d) of Sec.148A on 30-03-2022 and reopened the case vide notice u/s 148 dated 31-03- 2022. The assessee filed return of income on 21-02-2023 declaring income of Rs.1.50 Lacs. During the course of assessment proceedings, the assessee was required to file documents to show availability of cash which assessee failed to do so. Consequently, Ld.AO made addition of Rs.3.52 Lacs to the income of the assessee. The Ld. CIT(A) confirmed the action of Ld. AO against which the assessee is in further appeal before us. 3. From the facts, it clearly emerges that Ld. AO has only disputed the source of cash deposits which happen to be Rs.3.30 Lacs as against Rs.3.52 Lacs as considered by Ld. AO. Upon perusal of case records, it could be seen that the cash deposits have been attributed to small gifts from relatives and past personal savings. The assessee has Printed from counselvise.com 3 declared income of Rs.1.50 Lacs. Since the income is below taxable limit, the assessee is not required to file any return of income. Nevertheless, the availability of past savings and receipt of gifts could not, altogether be ruled out considering the background of the assessee. On these facts, in our considered opinion, the impugned addition of Rs.3.52 Lacs is not sustainable on merits. We order so. The other grounds as urged by Ld. AR has been rendered mere academic in nature. 4. The appeal stand allowed in terms of our above order. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 21-08-2025 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 AMRITSAR Printed from counselvise.com "