MOHINDER SINGH PUNJ,PANCHKULA vs. ITO WARD-2, PANCHKULA

PER RAJ PAL YADAV, VP The assessee is aggrieved with the order of the Commissioner of Income Tax (Appeals) [in short ‘the CIT (A)’] dated 20.09.2023 passed for assessment year 2017-18. The solitary grievance of the assessee is that ld. CIT(A) has erred in confirming the addition of Rs.3,99,000/-. 2. With the assistance of ld. Representative, we have gone through the record carefully. On a perusal of the record, we find that AO has made a total addition of Rs.29,99,000/- on account of A.Y.2017-18 2

unexplained cash deposit in the bank. On appeal, the ld. CIT(A) has deleted an addition of Rs.26,00,000/- on the ground that one Shri
Paramveer Singh has given a loan of Rs.26,00,000/- to the assessee.
The credit worthiness of this amount is not in doubt, hence, ld.
CIT(A) has deleted the addition. However, a sum of Rs.3,99,000/- was confirmed by the ld. CIT(A) because this amount was deposited during demonetization. We find that a small amount of Rs.3,99,000/- could represent past savings because all of a sudden, the currency notes of 1000 and 500 were discontinued, therefore, under compulsion savings available with the family had to be deposited in the account. It is very difficult in day today life to have a track of yearly savings and for what purpose the amount was kept by a human being. Therefore, to this extent, the explanation of the assessee ought to have been accepted by the Revenue Authorities. We allow this appeal and delete the addition.
3. In the result, appeal is allowed.

Order pronounced on 15.01.2025. (KRINWANT SAHAY)
VICE PRESIDENT
“Poonam”
A.Y.2017-18
3

आदेश क ितिलिप अ ेिषत/ Copy of the order forwarded to :

आदेशानुसार/ By order,
सहायक पंजीकार/