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

Assessee by : Shri Ajay Jain, CA Revenue by : Dr. Ranjit Kaur, Addl.CIT, Sr.DR Date of Hearing : 13.01.2025 Date of Pronouncement : 15.01.2025 PHYSICAL HEARING O R D E R 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/-.

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.