DHANUBEN MADHUBHAI PRAJAPATI,MUMBAI vs. WARD 42(1)(2), KAUTILYA BHAVAN, MUMBAI

Per: Smt. Beena Pillai, J.M.:

The present appeal filed by the assessee arises out of the order dated 24/03/2025 passed by Ld. CIT(A) -1, Ahmedabad,
[hereinafter ‘Ld. CIT(A)’) for assessment year 2017-18. 2. At the outset, the Ld. AR submitted that the assessee expired on 29/10/2020 and, therefore, the legal heir is representing the present appeal before this Tribunal. He submitted that, the addition made by the Ld. AO is based on cash deposits made during the demonetisation period amounting to Rs. 13,50,000/-.
2.1. The Ld. AR submitted that, the assessee maintained her account with Bank of India and had deposited the said amount

I.T.A. No. 3602/Mum/2025

during the period 09/11/2016 to 31/12/2016. The Ld. AO noted that the assessee offered Nil income in the return of income filed for the year under consideration and, therefore, the addition was made in hands of the assessee amounting to Rs. 6,75,000/- u/s 69A of the Act.
Aggrieved by the order of the Ld. AO, the assessee preferred appeal before the Ld. CIT(A).
3. The Ld. CIT(A) upheld the addition made by the Ld. AO.
4. We have considered the submissions advanced by both the sides in light of the records placed before us.
4.1. It is noted that the authorities below has not considered the following CBDT Circulars/Instructions :- a) Instruction 3/2017, issued on February 21, 2017. b) Instruction No. 4/2017 dated 3rd March, 2017. c) Circular F. No. 225/363/2017 – ITA. II, dated 15/11/2017. d) Circular F.no.225/145/2019-ITA.II dated 09/08/2019. 4.2. The Ld. AO is directed to verify the addition based on demonetized cash based on the applicable Circular specific to the assessee. The assessee is directed to furnish PAN and other details of the depositors if circumstances so warrant, in order to assist the Ld. AO to consider the claim in accordance with law. Needless to say that proper opportunity of being heard must be granted to the assessee in accordance with law.
Accordingly, Grounds raised by the assessee stand partly allowed for statistical purposes.

I.T.A. No. 3602/Mum/2025

In the result, appeal filed by the assesse stands partly allowed for statistical purposes. Order pronounced in the open court on 24/11/2025 (OMKARESHWAR CHIDARA) Judicial Member Mumbai Dated: 24/11/2025

SC Sr. P.S.
Copy of the order forwarded to:
(1)The Appellant
(2) The Respondent
(3) The CIT
(4) The CIT (Appeals)
(5) The DR, I.T.A.T.By order

(Asstt.