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Facts
The assessee deposited Rs. 11 lakhs in cash during the demonetization period. The Assessing Officer (AO) added Rs. 10,46,000/- to the assessee's income, treating the remaining Rs. 54,000/- as cash in hand. The assessee claimed the cash was from relatives and friends, providing affidavits and loan details.
Held
The Tribunal held that the assessee had provided sufficient evidence, including affidavits from relatives and friends, confirming the source of the cash deposits. The AO failed to rebut the evidence provided by the assessee.
Key Issues
Whether the assessee proved the genuineness and source of cash deposits made during the demonetization period, and whether the AO erred in making the addition without rebutting the evidence.
Sections Cited
250, 147, 148, 143(3)
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Income Tax Appellate Tribunal, PUNE BENCHES “SMC” :: PUNE
Before: MS.ASTHA CHANDRA & DR.DIPAK P. RIPOTE
Assessee by Shri Pramod S Shingte – AR Revenue by Shri Ratnakar Shelake – Addl.JCIT(DR) Date of hearing 01/05/2025 Date of pronouncement 02/05/2025 आदेश/ ORDER
PER DR. DIPAK P. RIPOTE, AM:
This is an appeal filed by the assessee against the order of ld.Commissioner of Income Tax(Appeals)[NFAC], passed under section 250 of the Income Tax Act, 1961 for A.Y.2017-18 dated 14.11.2023. The assessee has raised the following grounds of appeal : “1. On the facts and circumstances of the case and in law the CIT(A), NFAC erred in confirming the action of Assessing Officer, Ward 11(3), Punc (hereinafter referred to as the AO) of adding Rs.11,00,000 [A] representing cash deposits during demonetization period, not accepting the submissions made by the appellant. The appellant prays that the AO be directed to delete the addition. The appellant craves leave to add, amend, alter, modify, delete or add a new ground of appeal before or at the time of hearing.” Submission of ld.AR :
2. The ld.AR filed a paper book. Ld.AR submitted that Assessee was serving in the Indian Army during the period and was posted in J&K. the same thing can be seen from the address mentioned in the assessment order. Assessee had filed Return of Income for A.Y.2017-18 on 29.11.2017. the Assessee’s only source of the Income is Salary Income. Assessee’s case was selected for scrutiny. The ITO noted that Assessee had deposited cash of Rs.11 lakhs on 10.11.2016. The ITO asked assessee to explain the source. Assessee made an elaborate submission, but Assessing Officer made addition of Rs.10,46,000/- out of Rs.11 lakhs presuming Rs.54,000/- as his cash in hand. Aggrieved by the same, assessee filed the appeal before the ld.CIT(A). Ld.CIT(A) confirmed the same. Ld.Authorised Representative submitted that during the year assessee wanted to purchase agricultural land as he was about to retire. Therefore, the assessee had got money from his relatives to whom he had given it earlier. Earlier, assessee had given ITA No.263/PUN/2025 [A] Rs.4,41,000/- by withdrawing from his bank account to his relatives. Similarly, assessee had taken a loan of Rs.4,60,000/- from his friends. The assessee filed Affidavits of these individuals confirming the payments. The Affidavits are before Executive Magistrates. Assessee filed copies of the PAN of all these individuals. Assessee also gave copy of details of Agricultural Land owned by these individuals. However, ld.CIT(A) confirmed the addition without going into the submission of the assessee.
Submission of ld.DR : 3. Ld.DR for the Revenue relied on the order of the Assessing Officer and ld.CIT(A).
Findings & Analysis : 4. We have heard both the parties and perused the records. It is noted that Assessee had filed Affidavit of Mr.Shashikant Ananda Karale, Ananda Bhairu Karale, Krishnath Shripati Patil, Pandurang Ganpati Londhe, Mangal Baburao Shinde, Rushikesh Bhikaji Jagtap, Sambhaji Balu Daware and Sambhaji Ishwara Kekare. These Affidavits were duly filed before the Assessing Officer and ld.CIT(A) also. Along with the affidavits, copy of the PAN card and Aadhar Card has also been submitted. The Affidavit does mention [A] source of income. The Assessing Officer has not uttered a single word in the assessment order regarding these Affidavits. Assessing Officer has merely stated that assessee filed Affidavits. Assessee also filed confirmations from these individuals. In these facts and circumstances of the case, the Assessee had proved source of the cash deposits. Assessee also proved identity of the individuals and genuineness of the transactions. Once assessee files affidavits, the Assessing Officer cannot just brush it aside, unless AO proves that Affidavits are not stating the true facts. Once assessee has discharged his initial burden, the onus shift to Assessing Officer to rebut Affidavits, confirmations, source of income. Assessing Officer has failed to rebut it. In these facts and circumstances of the case, we are convinced that the assessee has proved source of cash deposits of Rs.11 lakhs, accordingly, we direct the AO to delete the impugned addition. Accordingly, Ground of appeal raised by the assessee is allowed.