RAMA SUNIL KERKAR,RADHANAGARI V. INCOME TAX OFFICE, KOLHAPUR

ITA 1538/PUN/2025

AI Insights

The case revolves around an appeal by Rama Sunil Kerkar against the order of the CIT(A)/NFAC, which upheld the addition of Rs.6,45,781 as unexplained investment in the form of a fixed deposit. The Assessing Officer had made this addition under section 69 of the Income Tax Act, questioning the source of the funds for the fixed deposit. The assessee argued that the funds were transferred from her husband, Sunil Kerkar, who runs M/s Krishna Rice Mill, and were part of her accumulated salary. The tribunal examined the credibility of the source and the genuineness of the transactions and concluded that the assessee had adequately explained the source of the funds, leading to the allowance of her appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 707170 (ITAT-PUNE)
• Duration Of Justice: 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2019-2020
• Appeal Filed On: 20-06-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK KUMAR KEDIA
• Assessee Lawyers: PRAMOD S. SHINGTE
• Keywords: Unexplained investment; Source of fund
• Section: 69

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.1538/PUN/2025 िनधाᭅरण वषᭅ / Assessment Year : 2019-20 Rama Sunil Kerkar, Kerkar, Gavthan, Radhanagar, S.O. Kolhapur- 416212. PAN : IHLPK4562F Vs. ITO, NFAC, Delhi. Appellant Respondent आदेश / ORDER PER MANISH BORAD, AM: This appeal filed at the instance of assessee is directed against the order of Ld. CIT(A)/NFAC dated 06.06.2025 for A.Y. 2019-20. 2. Sole issue for my consideration is regarding the addition of Rs.6,45,781/- made by the Assessing Officer u/s 69 of the Act for unexplained fixed deposit. 3. I have heard rival contentions and perused the records placed before me. Ld. Counsel for the assessee has stated that Ld. Assessing Officer has made addition for unexplained investment in the form of fixed deposit with Bank of India at Rs.6,45,781/- and the source of this fixed deposit is from the bank transfer received Assessee by : Shri Pramod S. Shingte Revenue by : Shri Deepak Kumar Kedia Date of hearing : 10.07.2025 Date of pronouncement : 10.07.2025 ITA No.1538/PUN/2025 2 from M/s Krishna Rice Mill, Proprietor, Sunil Kerkar, who is the husband of the assessee. He also submitted that the amount received from M/s. Krishna Rice Mill is from the accumulated balance of salary given by Mr. Sunil Kerkar to his wife. On the other hand, Ld. DR stated that the salary expenditure incurred by M/s. Krishna Rice Mill is not genuine and therefore there is no valid source of fund received from M/s. Krishna Rice Mill. 4. I observe that prior to making of fixed deposit with Bank of India to Rs.6,45,781/-, the assessee received bank transfer from her husband’s sole proprietary concern M/s. Krishan Rice Mill on 01.03.2018 and 13.03.2018 at Rs.3,00,000/- and Rs.3,45,781/- respectively. The identity of M/s. Krishna Rice Mill as well as creditworthiness is not in dispute. Genuineness is also proved as the same has been received from assessee’s husband. M/s. Krishna Rice Mill is also assessed to tax and the proprietor Mr. Sunil Kerkar had declared net profit at Rs.8,10,449/- against gross receipts of approx Rs.87.67 lakhs. After going through these details, I am of the considered view that the assessee has successfully explained the nature of source of funds utilized for making the fixed deposit of Rs.6,45,781/- with Bank of India and therefore the impugned addition is uncalled for and is hereby deleted. Finding of Ld. ITA No.1538/PUN/2025 3 CIT(A)/NFAC is set-aside and the grounds of appeal raised by the assessee are allowed. 5. In the result, the appeal of the assessee is allowed. Order pronounced on 10th day of July, 2025. Sd/- (MANISH BORAD) ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 10th July, 2025. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “SMC” बᱶच, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "