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Judgment
This appeal arises from order dated 15.10.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), by NFAC, Delhi.
In this case, the assessee is reported to be deceased and the appeal has been filed by the one Shri Sanjay Sikka, Legal Heir of the assessee.
The Ld. AO made two additions in the case: (i) Rs.51,42,318/- by disallowing exemption claimed u/s 54 of the Act; and (ii) Rs.16,96,000/-as unexplained money u/s 69 of the Act. At first appellate stage the assessee could get relief on the addition of Rs.51,42,318/- but the addition of Rs.16,96,000/-, allegedly on account of unexplained cash deposit in the bank, was sustained.
Aggrieved with this action of Ld. CIT(A), the assessee has approached the ITAT challenging the addition u/s 69A of the Act.
Before us the Ld. AR argued with the help of a paper book and drew our attention to a copy of bank statement (account no.00261000231600 with M/s HDFC Bank). The Ld. AR took pains to point out that the only cash deposits in the bank account amounted to Rs.75,000/- and not the impugned amount as claimed by the Ld. AO. It was the submission that this fact was duly brought to the notice of the Ld. CIT(A) also but no credence was given to the same. The ld. AR duly pointed out the relevant entries in the bank account whereby a cash deposit of Rs.75,000/- over the course of November, 2011 could be clearly seen.
The Ld. DR relied on the orders of the authorities below.
We have carefully considered the rival submissions and have gone through the records before us. It is clearly visible that there is only a cash deposit of Rs.75,000/- and not as alleged by the Ld. AO. We also find that the explanation submitted by the assessee has not been duly considered by the Ld. CIT(A) and it is clearly visible that the assessee has a good and sufficient justification for the cash deposit of Rs.75,000/- and therefore we direct the deletion of the impugned amount and allow the grounds of the assessee pertaining to the addition u/s 69A of the Act.
In the result, appeal is allowed.