ITAT Deletes Section 69A Addition After Assessee Proves Cash Gift from Father:

The appeal was filed by Saagiraju Krishnama Raju Mohan Kumar against the order dated 24 October 2025 passed by the CIT(A) for Assessment Year 2013-14. The assessee is an individual and employee of Network Solutions Pvt. Ltd. Who had not filed his return of income for the relevant assessment year. Based on information regarding cash deposits available on the Income Tax Portal, reassessment proceedings under Section 147 were initiated and notice under Section 148 was issued. Subsequently, notices under Sections 143(2) and 142(1) were also issued.

The AO noticed that the assessee had deposited Rs. 9,99,000 in his ICICI Bank account. The assessee explained that the amount represented cash received as a gift from his parents. The AO treated the cash deposit as unexplained money under Section 69A and added the entire amount to the assessee's income under an order passed under Sections 147 read with 144 and 144B.

The CIT(A) upheld the addition of Rs. 9.99 lakh. 

Before the Tribunal, the assessee submitted that the assessee's father had sold an immovable property for Rs. 18 lakh and gifted Rs. 10 lakh out of the sale consideration to the assessee. The assessee relied upon the sale deed dated 15 November 2012 relating to the property sold by his father and a gift deed executed between the assessee and his father. Both documents were placed before the Tribunal as part of the paper book.

The Tribunal noted that the assessee had consistently maintained that the cash of Rs. 9.99 lakh deposited in the bank account was received as a gift from his father. On examination of the documentary evidence, the Tribunal found that the assessee had produced the gift deed, the sale deed concerning the land sold by his father, and the relevant bank statement. The sale deed showed that the father's property was sold for Rs. 18 lakh, while the bank statement established that Rs. 9,99,000 was deposited into the assessee's account on 1 February 2013.

Accordingly, the Tribunal held that the addition of Rs. 9,99,000 under Section 69A could not be sustained once the source of the cash deposit had been satisfactorily established through supporting documentary evidence. The Tribunal therefore deleted the entire addition of Rs. 9.99 lakh and allowed the appeal filed by the assessee.