RASMI AGARWAL,NARNAUL vs. ITO WARD - 2, NARNAUL

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ITA 1897/DEL/2024Status: DisposedITAT Delhi09 April 2025AY 2017-18Bench: the Assessing Officer (AO) that the cash deposits are from earlier withdrawals by the assessee from her bank. The assessee had withdrawn Rs.9,00,000/- on 14.09.2016 and Rs.2,50,000/- on 30.08.2016. Subsequently, Rs.10,00,000/- were deposited on 13.12.2016, thus, the cash deposits were from earlier withdrawals. The assessee had furnished bank statement in support of her submission. The source of cash deposits explained by the assessee was arbitrarily rejected by the AO. The assessee carried 3 pages

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Facts

The assessee challenged an addition of Rs.10,02,000/- confirmed by the CIT(A) for alleged unexplained cash deposits in her savings bank account during the demonetization period. The assessee contended that the deposits were sourced from prior bank withdrawals of Rs.9,00,000/- on 14.09.2016 and Rs.2,50,000/- on 30.08.2016, supported by bank statements, but the AO and CIT(A) rejected this explanation.

Held

The Tribunal found the assessee's explanation regarding the source of cash deposits from earlier bank withdrawals to be plausible and accepted it. Accordingly, the addition confirmed by the CIT(A) was set aside, and the appeal of the assessee was allowed.

Key Issues

Whether cash deposits made during the demonetization period, explained by prior withdrawals from the assessee's own bank account, can be treated as unexplained cash and subjected to addition under the Income Tax Act.

Sections Cited

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Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI

Hearing: 14/01/2025

(A.Y.2017-18) Rasmi Agarwal, w/o Shri Vishal Aggarwal, Mohalla-Kharkhari, CIA Road, Narnarul, District Mahendergarh, Haryana 123001 ...... अपीलाथ�/Appellant PAN: AJKPA-7952-N बनाम Vs. Commissioner of Income Tax (Appeals) Income Tax Department ..... �ितवादी/Respondent National Faceless Appeal Centre, Delhi अपीलाथ� �ारा/ Appellant by : S/Shri Sanjiv Jain, & Arpit Goel Chartered Accountants �ितवादी�ारा/Respondent by : Shri Sanjay Kumar, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 14/01/2025 घोषणा क� ितिथ/ Date of pronouncement : : 09/04/2025 आदेश/ORDER

PER VIKAS AWASTHY, JM:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 27.02.2024, for assessment year 2017-18.

Shri Sanjiv Jain appearing on behalf of the assessee submits that the assessee in appeal has assailed the addition of Rs.10,02,000/- confirmed by the CIT(A) on account of alleged unexplained cash deposits in her saving bank account during (AY 2017-18) demonetization period. The ld. AR of the assessee submits that the assessee had explained before the Assessing Officer (AO) that the cash deposits are from earlier withdrawals by the assessee from her bank. The assessee had withdrawn Rs.9,00,000/- on 14.09.2016 and Rs.2,50,000/- on 30.08.2016. Subsequently, Rs.10,00,000/- were deposited on 13.12.2016, thus, the cash deposits were from earlier withdrawals. The assessee had furnished bank statement in support of her submission. The source of cash deposits explained by the assessee was arbitrarily rejected by the AO. The assessee carried the issue in appeal before the CIT(A). The CIT(A) without considering the submissions of the assessee, dismissed appeal of the assessee.

Shri Sanjay Kumar representing the department vehemently defended the impugned order and prayed for upholding the same and dismissing appeal of the assessee.