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Facts
The Assessing Officer made an addition of Rs. 1.58 lakhs to the assessee's income, related to cash deposits totaling Rs. 2,30,000/- made into the bank account during demonetization. This addition was subsequently upheld by the Commissioner of Income-tax (Appeals).
Held
The Income Tax Appellate Tribunal found no merit in the impugned addition. It accepted the assessee's explanation that the cash deposits were sourced from accumulated past savings, leading to the deletion of the Rs. 1.58 lakh addition.
Key Issues
Whether the assessee had adequately explained the source of cash deposits made during the demonetization period as accumulated past savings.
Sections Cited
143(3)
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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
Commissioner of Income-tax (Appeals) Addl/JCIT(A)-1, Surat’s DIN and order no. ITBA/APL/S/250/2024-25/106531492(1), dated 31.05.2024, in case no. CIT(A), Ghaziabad/10897/2019-20, in proceedings u/s 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’. proceeded ex parte. from a perusal of the case file that the learned Assessing Officer had made addition of Rs. 1.58 lakhs regarding the assessee’s cash deposits made in the bank account totaling to Rs. 2,30,000/- during the demonetization.
A perusal of the assessment discussion in para 3.2 indicates that the learned Assessing Officer had discussed the assessee’s entire cash deposits to arrive at the impugned addition which stands upheld by the learned CIT(A) in the lower appellate discussion.
I have given my thoughtful consideration to the assessee’s foregoing sole substantive ground as well as Revenue’s vehement contentions supporting the impugned addition and find no merit to sustain the same. This is for the precise reason that the assessee had duly explained the source of his foregoing cash deposits during demonetization which stood duly accepted in principle but for the addition of Rs. 1.58 lakhs. I hold in this factual backdrop that assessee’s accumulated past saving formed the source of such cash deposit and therefore the impugned addition of Rs. 1.58 lakh is deleted. assessee’s latter appeal is dismissed as a ‘duplicate’ file. A copy of this common order be placed in the respective case files. Order pronounced in open court on 27.11.2024.