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Facts
The assessee deposited Rs. 2,82,500/- in cash into their bank account during the demonetization period. The assessing officer confirmed an addition of this amount as unexplained money. The assessee also had commission income from a Gas Agency.
Held
The Tribunal held that given the commission income from the Gas Agency and the amount deposited, it could be considered as cash in hand representing income earned from the Gas Agency. Therefore, it cannot be treated as undisclosed income.
Key Issues
Whether cash deposits during demonetization, which can be explained by income from other sources, can be treated as unexplained money.
Sections Cited
69A
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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL
IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER (Assessment Year: 2017-18) Amrutbhai Kantilal Patel, Income Tax Officer, Vs. C/28, Snehal Flat, Ward-4(2)(1), Opp. Sarvoday 1, Ahmedabad Ghatlodia, Ahmedabad-380061. [PAN : AFTPP4663 C] (Appellant) .. (Respondent) Appellant by : Shri M. K Patel, AR Respondent by: Ms. Bhavnasingh Gupta, Sr DR Date of Hearing 01.05.2025 Date of Pronouncement 06.05.2025 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
This appeal is filed by the Assessee against the appellate order dated 26.12.2024 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Year 2017-18. 2. The assessee has raised the following grounds of appeals:
1. That on facts, and in law, the learned Additional CIT(Appeal)-6. Chennai, Income Tax Department has grievously erred in confirming the addition of unexplained money amounting of Rs.2,82,500/- u/s.69A of the Act.
2. Your appellant craves leave to add/alter or amend any of the grounds till the appeal is finally heard and decided. Amrutbhai Kantilal Patel. Vs. ITO Asst. Year : 2017-18 - 2– 3. Heard the arguments of both the parties and perused the facts available on record. The assessee has deposited cash of Rs. 2,82,500/- in his bank account during the Demonetization period. We have gone through the instruction No.3/2017 of CBDT dated 21.02.2017, wherein it was advised to fill information in the case of an individual not having any business income an amount upto Rs.2,50,000/- may be treated as household savings. In this case, the assessee is also having commission income from Gas Agency and the total deposits were to the tune of Rs.2,82,500/- . Owing to the overall facts that money earned out of Gas Agency represents the entire cash deposits and keeping view the smallness of amount, we have no hesitation to say that assessee could have had Rs.2,82,500/- as cash in hand. Hence, the same cannot be treated as undisclosed income of the assessee.
In the result, the appeal of the assessee is allowed.