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Facts
The assessee, an individual, filed her ITR for AY 2017-18. During the demonetization period, she deposited Rs.12,59,500/- in cash into her bank account, which was subsequently added as unexplained cash credit under Section 69A by the Assessing Officer and confirmed by the CIT(A). The assessee contended that the cash originated from her tuition income, past savings, and a cash gift from her father who passed away during the Covid pandemic.
Held
The Tribunal considered the assessee's claim of income from private tuitions, her past savings, and the cash received from her father. It concluded that, given these facts and the perceived smallness of the amount, the addition made by the lower authorities was not justified. Consequently, the addition was deleted, and the assessee's appeal was allowed, though the order is not to be treated as a precedent.
Key Issues
Whether the cash deposit during the demonetization period constitutes unexplained cash credit under Section 69A, considering the assessee's explanation of tuition income, past savings, and a cash gift from her father.
Sections Cited
Section 143(3), Section 69A
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Income Tax Appellate Tribunal, “SMC” BENCH, DELHI
Before: MS. MADHUMITA ROY
The instant appeal filed by the assessee is directed against the order dated 08.03.2024 passed by the CIT(A) National Faceless Appeal Centre (NFAC), Delhi, arising out of the Assessment order dated 13.11.2019 passed by the ITO 2(1) Moradabad, Under Section 143(3) of the Income Tax Act (hereinafter referred to as ‘the Act’) for Assessment Year 2017-18.
The assessee before us an individual filed her return of income for the year under consideration on 26.03.2018 at Rs.3,96,400/-. During the demonetization period cash was deposited by her to the tune of Rs.12,59,500/- in her bank account and the case was, therefore, selected for limited scrutiny. During the assessment proceeding though notices were served upon the assessee nothing was forthcoming and the assessment proceeding was finalized upon making addition of the entire cash deposit of Rs.12,59,500/- as unexplained cash credit under Section 69A of the Act which was further confirmed by the First Appellate Authority. Hence, the instant appeal before us.
At the time of hearing of the instant appeal, the Ld. Counsel appearing for the assessee submitted before us that the assessee a widow lost both her father and then her husband during Covid, was a teacher in Haridwar till her marriage and even after marriage started giving private tuitions and her entire earning was in cash. The father of the assessee died in 20.10.2020 and at the time of death some cash was given to her by him. The disputed cash deposit was out of the said amount given to the assessee by her father and also out of her tuition income which has not been considered by the Ld. CIT(A) and appeal was wrongly dismissed as submitted by the Ld. A.R.
However, since the case was not properly represented before the Assessing Officer the Ld. D.R prayed for setting aside the issue to the file of the Ld. AO.
5. Having heard the Ld. Counsel appearing for the parties and having regard to the facts and circumstances of the matter as the assessee since long was giving tuition and was a housewife too, therefore, taking into consideration her past savings and income out of her tuition and the cash given to her by her father during death and having regard to the smallness of amount the addition is not found to be justified. The addition is, therefore, deleted. However, it is made clear that this order may not be considered a precedent. The assessee’s appeal is allowed.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 30.10.2024