JAYASHREE SANJAY JADHAV,MUMBAI CITY vs. ASSISTANT COMMISSIONER OF INCOME TAX , CIRCLE 42 (2) (3), MUMBAI , MUMBAI

This appeal has been preferred by the Assessee against the order dated 31.07.2025, impugned herein, passed by Ld. Commissioner of Income Tax (Appeals) ADDL/JCIT (A) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2008-09.

Admittedly, the case of the Assessee was selected for scrutiny for the following issues: (i) cash deposit in the bank account during demonetization period from 09.11.2016 to 31.12.2016. (ii) transactions made in immovable property and (iii) investment of Rs.1,50,000/- u/s 80C.

The Assessee though being aggrieved challenged the said addition by filing first appeal before the Ld. Commissioner, however, did not get any relief as the Ld. Commissioner vide impugned order affirmed the addition by dismissing the appeal. Thus, the Assessee being aggrieved has challenged the aforesaid addition.

Having heard the parties and perused the material available on record. Admittedly, the authorities below were empowered to examine the cash deposits made during the period from 09.11.2016 to 31.12.2016 only, as the case was selected for limited scrutiny of the issues mentioned above and was not converted complete scrutiny. However, the AO still made the addition of Rs.15,04,500/- by considering the deposit made even outside the purview of the demonetization period and thus, this court is inclined to delete the addition under consideration, however, subject to verification by the AO to extent of cash deposit by the assessee during 09.11.2016 to 31.12.2016 only. The AO is thus directed to restrict the addition to the extent of cash deposit made by the Assessee, during demonetization period only.

In the result, the Assessee’s appeal is allowed in the said terms.