Addition cannot be sustained in absence of inconsistency in assessee’s claim and non-rebuttal: ITAT

The assessee has made cash deposits amounting to Rs. 41.21,700 into her saving bank accounts maintained with Punjab National Bank, during the financial year 2009-10 relevant to the assessment year 2010-11. An amount of Rs. 41,21,700 is held to be the deemed income of the assessee for the year under consideration in view of the provisions of section 69A of the I.T.Act, 1961 and the same is added to the total income of the assessee for the assessment year 2010-11 as the assessee has concealed the particulars of his income and the income was deposited from undisclosed sources.  Penalty proceedings u/s 274 r.w.s 271(l)(c) of the Income Tax Act, 1961 are initiated separately.

Appeal before CIT(A): The assessee took these issues in appeal before the CIT(A) but the addition was sustained in appeal.

Appeal before ITAT:  Aggrieved by the order assessee filed appeal before the Tribunal. The tribunal observed that none of these documents, it is seen have been faulted by the Revenue. In the absence of any inconsistency in the assessee’s claim and non-rebuttal of supporting documents, the addition cannot be sustained arbitrarily. The addition was directed to be deleted. It was also observed that the assessee has raised a jurisdictional challenge. Going through the facts available in the assessment order the tribunal observed that the notices issued at the incorrect address are non est. the tribunal held that since the addition on merits has been deleted before Ld. CIT(A), the jurisdictional issue, accordingly, does not require any specific adjudication. Hence, the appeal of the assessee was allowed.