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Judgment
This assessee’s appeal for Assessment Year 2011-12 arises against the C IT(A)/NFAC, De lhi’ s DIN & order No. ITBA/NFAC/S/250/2023-24/1053776476(1) dated 18.06.2023, in proceedings u/s 147 r.w.s. 143(3) of the Income Tax Act, 1961 (in short “ the Act”).
Heard both the p arties at length. Case file perused.
It is no ticed during the co urse of hearing that the learned assessing authority had infact set into motion se ction 148/147 proceedings after recording reasons to belief that the assessee’s taxable inco me representing cash deposits of Rs.21,74,870/- had escaped assessment.
It thereafter turned out during the course of hearing of assessment that the assessee had sold her immovable property(ies) w herein she could explain the cash deposits except to the tune of Rs.6,90,000/- as forming part of the sale proceeds. It is in this factual backdrop that both the learned lower authorities have made section 69A addition of Rs.6 ,90,000/- in the assessee’s hands. That being the case , the Revenue could hardly dispute that going by Smt. Malini Ramnath Re le vs. ITO (1994) 49 IT D 43(MUM) (TM), the necessary inference in such an instance is that than cash deposits form part of the cash sale consideratio n only altho ugh not declared before the learned departmental aut horities. I thus delete the impugned former additio n of Rs.6,90,000/- in very terms.
Next come s the cost o f improvement disallow ance/addition of Rs.15,52,000/-. Suffice to say, this tribunal is of the considered view that given the fact that the aforesaid addition based on the so le reaso n of reop ening itself stands deleted, the impugned reopening is not sustainable in law going by CIT(E) Vs. B.P. Poddar Foundation For Education (2022) 448 ITR 695 (Cal.), ATS Infr astructure Ltd. vs. ACIT (2024) 166 taxmann.co m 61 (Delhi) and CIT vs. Jet Airways (India) Ltd. (2011) 331 IT R 236 (Bo m.). Quashed accordingy.
All remaining pleadings between the par ties on merits stand re ndered academic.
This assessee’s appeal is allowed.