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Facts
The Assessing Officer made an addition of Rs. 1.58 lakhs for cash deposits totaling Rs. 2,30,000/- made by the assessee during the demonetization period. This addition was upheld by the CIT(A), leading the assessee to appeal.
Held
The Tribunal ruled that the assessee had sufficiently explained the source of the cash deposits as accumulated past savings, which had been accepted in principle by the authorities. Consequently, the impugned addition of Rs. 1.58 lakhs was deleted.
Key Issues
Whether the addition made on account of unexplained cash deposits during demonetization, when the source is explained as accumulated past savings, was justified.
Sections Cited
Section 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.
I take up the assessee’s ‘lead’ appeal ITA no. 3460/Del/2024. It emerges 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. succeeds in very terms. The A copy of this common order be placed in the respective case files.
Order pronounced in open court on 27.11.2024.