Cash Deposited on account of Tuition fees: ITAT upheld addition as assessee was unable to explain Education qualification

The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the action of AO in adding the cash deposited during demonetization period in assessee’s savings bank account maintained with Punjab National Bank between 15.11.2016 to 05.12.2016 amounting to Rs.7.68 lakhs. The AO noted that the assessee has admitted income only to Rs.2,42,540/- during the financial year relevant to this assessment year 2017-18 and hence, giving credit for the same, the AO assessed the balance cash deposit of Rs.5,25,460/- as unexplained investment u/s.69 of the Act. Aggrieved assessee preferred appeal before CIT(A). The CIT(A) also confirmed the action of the AO as the assessee could not produce any evidence before him and he confirmed by observing in para 6 as under:-

“6. Matter is considered. Perused the assessment order and the submissions e-filed by the appellant. Except for saying that the source of the impugned cash deposits is from past savings, the AR has not demonstrated the same with any documentary evidence before me. To that extent, the appellant has not discharged the onus of proving the sources of deposits of specified bank notes (SBNs) to the tune of Rs.5,25,460/- as determined by the AO. Hence, I decline to interfere with the addition made at Rs.5,25,460/- as unexplained investment u/s 69 of the IT Act, 1961. The grounds taken are dismissed.”

Aggrieved assessee came in appeal before Tribunal.

The ld.counsel for the assessee filed paper- book consisting of 25 pages wherein he has filed cash flow statement, profit & loss account for the year ending 31.03.2017 and profit & loss account for the year ending 31.03.2016 wherein cash in hand of Rs.2,12,625/- & Rs.8,25,295/- respectively is declared. The ld.counsel for the assessee stated that the assessee is filing returns of income from assessment year 2011-12 to 2015-16 and source is tuition income.

Observation of Tribunal:

It was answered by ld.counsel, on query from the Bench, that these profit & loss account now filed before tribunal was never part of the returns of income filed.

Tribunal concluded that these evidences are created and after thought and as assessee is unable to prove the cash deposit made during demonetization period of amount of Rs.5,25,460/-.

Even the sources explained by assessee is that of tuition but on query, the ld.counsel could not explain to whom and how many children, the assessee is taking tuition and what is her educational qualification.

In the absence of any evidences, order of CIT(A) was confirmed. The appeal of the assessee was dismissed.

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