What did the Tribunal hold?

The Tribunal held that the cash deposits were out of the past withdrawals made by the assessee. Therefore, the additions made by the revenue were not sustainable.

The assessee made cash deposits during the demonetisation period. The assessee had withdrawn a significant amount from their bank account prior to these deposits.

What were the issues?

The primary issue was whether the cash deposits made during the demonetisation period were unexplained income or represented out of previous withdrawals.

Jayanti Roy vs I.T.O., Ward - 33(4) | ITAT Kolkata 2023

Income Tax Appellate Tribunal, “SMC” BENCH KOLKATA

Before: Shri Sanjay Garg & Dr. Manish Borad

order : May 23, 2023 आदेश / ORDER संजय गग�, �या�यक सद�य �वारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 08.12.2022 of the National Faceless Appeal Centre (hereinafter referred to as the ‘CIT(A)’) passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’).

The sole issue raised in this appeal is regarding the cash deposits during demonetisation period.

At the outset, the ld. AR of the assessee has brought to our attention to page 6 of the paper-book which is the copy of the bank accounts of the assessee maintained with Allahabad Bank and Bank of Assessment year: 2017-18 Jayanti Roy Baroda to show that prior to deposits of the said amount in the month of November, the assessee has withdrawn about Rs.45,00,000/- in the month of July 2016. The ld. AR however submitted that the aforesaid deposits were made out of the aforesaid withdrawals.

The ld. DR could not rebut that the assessee has withdrawn almost Rs.45,00,000/- which is three or four months prior to deposit of Rs.17,00,000/-, which amount is only 1/3rd of the withdrawals.

It is apparent that the said deposits were out of past withdrawals, therefore, we do not find any reason to sustain the impugned additions and the same are ordered to be deleted.

In the result, the appeal of the assessee stands allowed. Kolkata, the 23rd May, 2023. Sd/- Sd/- [डॉ�टर मनीष बोरड /Dr. Manish Borad] [संजय गग� /Sanjay Garg] लेखा सद�य /Accountant Member �या�यक सद�य /Judicial Member Dated: 23.05.2023. RS Copy of the order forwarded to: 1. Jayanti Roy 2. ITO, Ward-33(4), Kolkata 3. CIT(A)- 4. CIT- , 5. CIT(DR),

JAYANTI ROY,KOLKATA vs. I.T.O., WARD - 33(4), KOLKATA, KOLKATA

What did the Tribunal hold?

What were the facts?

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Which sections of the Income-tax Act were involved?

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