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Facts
The assessee appealed against an addition of Rs. 14,79,970/- made by the Assessing Officer and confirmed by the CIT(A) for A.Y. 2017-18. This addition was due to cash deposits during the demonetization period, treated as unexplained income. The assessee explained that a sum of Rs. 15,78,000/- had been withdrawn on 07.10.2016 for domestic purposes and subsequently re-deposited into the bank account after the demonetization announcement.
Held
The Tribunal condoned the delay in filing the appeal. It found no justification for the lower authorities' action in making/confirming the addition, noting that the Departmental Representative could not rebut the assessee's explanation regarding the re-deposit of previously withdrawn cash. Consequently, the addition of Rs. 14,79,970/- was ordered to be deleted.
Key Issues
Whether the addition made for cash deposits during the demonetization period, where the assessee claimed re-deposit of earlier withdrawals, was justified.
Sections Cited
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आदेश/Order
The present appeal has been filed by the assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [in short referred to as CIT(A)] dated 27.02.2024 relating to A.Y. 2017-18.
The appeal is time barred by 146 days. A separate application for condonation of delay has been filed. -2024 A.Y. 2017-18 2 Considering the averments made in the application, the delay in filing the present appeal is hereby condoned.
The assessee in this appeal has contested the action of the CIT(A) in confirming the addition made by the AO of Rs.14,79,970/- by treating the cash amount deposited during demonetization period as income of the assessee from unexplained sources.
At the outset, the ld. Counsel for the assessee has invited my attention to copy of the bank entries of deposit and withdrawal during the period as reproduced in para 2.6 of the impugned order of the CIT(A). A perusal of the said chart reveals that the assessee had withdrawn a sum of Rs.15,78,000/- on 07.10.2016 from his bank account No. 50200020596701. There are other entries of withdrawal and re-deposit which have also been duly reproduced in the said chart. It has been explained that the assessee had withdrawn the said amount of Rs.15,78,000/- only on 07.10.2016 for some domestic purposes, however, soon after the demonetization scheme was announced and the assessee
per force had to re-deposit the said amount in his bank account.
ITA No. 984/Chd-2024 A.Y. 2017-18 3
The ld. DR could not rebut the aforesaid facts on this file.
In view of this, I do not find any justification on the part of the lower authorities in making/confirming the impugned addition, same is, accordingly, ordered to be deleted.
In the result, appeal of the assessee stands allowed.