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Facts
The assessee filed a return of income showing Rs. 3,04,500. During assessment, it was observed that the assessee deposited Rs. 10,09,750 in cash during the demonetization period. The AO made an addition of this amount. The assessee claimed the cash deposit was from tuition income and marriage gifts.
Held
The Tribunal noted the assessee had an opening balance of Rs. 5,16,400. Considering this, along with tuition income and marriage gifts, the Tribunal held that no addition under Section 69A was called for.
Key Issues
Whether the addition of Rs. 10,09,750 on account of cash deposits made during demonetization is justified, and if Section 115BBE was correctly applied without a show cause notice.
Sections Cited
69A, 115BBE, 250
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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD
Before: DR.BRR KUMAR & SHRI SIDDHARTHA NAUTIYAL
Shri Vivek Chavda, A.R. Appellant by : Respondent by: Ms. Ketaki Desai, Sr. DR Date of Hearing 07.01.2025 24.01.2025 Date of Pronouncement O R D E R PER: DR. BRR KUMAR, VICE PRESIDENT:
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Appeal)/National Faceless Appeal Centre (NFAC), Delhi, vide order dated 30.03.2024 for the Assessment Year 2017-18.
The Assessee has taken the following grounds of appeal:-
1.1 The order passed u/s. 250 on 30.03.2024 for A.Y.2017-18 by CIT(A) - NFAC, Delhi upholding the additions of Rs.10,09,750 is wholly illegal, unlawful and against the principles of natural justice.
Asst.Year 2017-18 - 2– 1.2 The Ld. CIT(A) has grievously erred in law and or on facts in not considering fully and properly the eccentric facts and evidence available with regard to the impugned additions. 1.3 The Ld. CIT(A) has grievously erred in law and on facts in not carrying out any inquiry with regard to the applicability of the provisions of Income tax Act and thereby violated the principle of natural justice. Therefore, the appellant shall be granted opportunity to produce additional evidences. 2.1 The Ld. CIT(A) has grievously erred in law and or on facts in upholding the addition of Rs.10,09,750 under section 69A. 2.2 That the Ld. CIT(A) ought not to have upheld the addition of Rs. 10,09,750 under section 69A. 3.1 The Ld. CIT(A) has grievously erred in law and or on facts in upholding the application of Section 115BBE by levying higher rate of tax. 3.2 That the Ld. CIT(A) ought not to have upheld the levy of higher tax rate by invoking the provisions of Section 115BBE when the AO has not even issued specific show cause notice to the same. It is therefore prayed that the addition / disallowances made by Ld. AO and upheld by the CIT(A) may please be deleted in the interest of natural justice and considering the eccentric facts of the case.
The brief facts of the case are that assessee is an Individual and having professional income. The assessee had filed its return of income showing total income of Rs.3,04,500 on 03.08.2017 for AY: 2017-18. During the course of assessment proceedings, the Assessing Officer observed that the assessee had deposited cash into the bank account with Indusind Bank (A/c No.100030881773) to the tune of Rs.10, 09,750 during the demonetization period. In absence to any reply, the AO made addition of entire amount of Rs.10, 09,750 by order dtd.25.11.2019.
Aggrieved by the order of the AO, the assessee preferred appeal before the First appellate authority. During the course of CIT(A), the assessee explained the fact that the cash was deposited out of regular tuition Asst.Year 2017-18 - 3– income of the assessee which was earned in the year under consideration as well as in past. Moreover, the assessee solemnized and received an amount of Rs.3.5 lakhs on the occasion of marriage. The assessee filed detailed accounts as well as affidavit to substantiate the claim. Before us the Ld. AR reiterated the arguments taken up before the revenue authorities and the Ld. DR relied on the orders of the authorities below. The assessee have also opening balance of cash of Rs.5,16,400/- the fact of which is also not in dispute. Keeping in view the opening balance of cash, the tuition income and the marriage gifts we hold that no addition u/s.69A is called for in the case of the assessee.
In the result, the appeal of the assessee is allowed.
This Order pronounced in Open Court on 24.01.2025
Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR. BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Ahmedabad; Dated 24.01.2025 Manish, Sr. PS TRUE COPY आदेश क� �ितिलिप अ�ेिषत/Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A)- 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाईल / Guard file. आदेशानुसार/ BY ORDER,