ITAT Ahmedabad Gives Relief in Cash Deposit Case by Deleting Rs 11 Lakh Addition
The Income Tax Appellate Tribunal (ITAT), Ahmedabad, has granted major relief to a Hindu Undivided Family (HUF) after observing that the assessee had made enough submissions to substantiate its claim.
The assessee, Sumatibhai M. Shah HUF, filed an ITR declaring income of Rs 2,30,340. Its case was selected for scrutiny, during which the Assessing Officer made an addition of Rs 11 lakh under Section 69A, treating the cash deposits in the bank as unexplained income.
The assessee HUF appealed before the CIT(A) but did not succeed. Therefore, the matter was sent to ITAT.
The HUF argued that the cash deposits were from withdrawals made for family needs, including medical expenses of the assessee’s mother. The assessee also said that the CIT(A) had ignored the submissions made as per Rule 46A.
During the hearing before the ITAT, the taxpayer submitted detailed submissions, such as the details of medical exigencies, cashbook, and bank statements.
After examining the evidence, the tribunal observed that the withdrawals and deposits matched the bank records. It noted that CIT(A) had ignored these submissions and upheld the addition. The tribunal held that such additions cannot be sustained.
Accordingly, the tribunal allowed the appeal of the assessee.
Case Citation: Sumatibhai M. Shah HUF Vs ITO (ITAT Ahmedabad); ITA No. 2553/Ahd/2025; 16/04/2026; 2017-18
