SATHI MANGAYAMMA,EAST GODAVARI DIST vs. INCOME TAX OFFICER, WARD-2, KAKINADA

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ITA 119/VIZ/2025Status: DisposedITAT Visakhapatnam30 June 2025AY 2017-18Bench: us : “1. The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs.17,27,120 made by the assessing officer by estimating profit computed @ 8% of the total deposits Rs.2,15,89,000 excluding the cash deposits during demonetization period. 3. The learned Commissioner of Income Tax (Appeals) is not justified in s1 pages

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Facts

The assessee's appeal arises from an order that sustained additions made by the Assessing Officer (AO) based on cash deposits in her bank account during the demonetization period and other credits. The AO treated certain credits as business receipts and estimated profit at 8%, while cash deposits were considered unexplained money under Section 69A.

Held

The Tribunal held that the claim that cash deposits were sourced from cash in hand or business sale proceeds during demonetization was unsubstantiated. The Tribunal also addressed the applicability of the enhanced tax rate under Section 115BBE, concluding that the pre-amended rate of 30% should apply to the income determined under Section 69A for the assessment year in question.

Key Issues

Whether cash deposits during demonetization were sourced from unexplained money, and whether the amended Section 115BBE applied to the assessment year.

Sections Cited

144, 69A, 115BBE

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Income Tax Appellate Tribunal, Visakhapatnam Bench

For Appellant: Dr. Satyasai Rath, CIT(DR)

आदेशकी प्रतततिति अग्रेतषत/ Copy of the order forwarded to:- 1. तिर्ााररती/The Assessee : Sathi Mangayamma, R/o.D.No.7-7-2, Near GRSA Club, Ramachandra Puram, G. Mamidada, East Godavari District. 2. राजस्व/ The Revenue : The Income Tax Officer, Ward – 2, Kakinada. 3. The Principal Commissioner of Income Tax, Visakhapatnam 4. तवभागीयप्रतततितर्, आयकर अिीिीय अतर्करण, / DR, ITAT, Visakhapatnam. 5. गार्ाफ़ाईि / Guard file

आदेशािुसार / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam