RAMENDER SINGH,DEHRADUN vs. INCOME TAX OFFICER, DEHRADUN

The only effective issue to be decided in this appeal is as to whether the ld NFAC was justified in confirming the addition made in the sum of Rs. 7,50,000/- on account of cash deposit made during demonization period.

We have heard the rival submissions and perused the material available on record. The assessee had disclosed Rs. 2,25,000/- as taxable income and Rs. 5,50,000/- of agricultural income which was claimed as exempt in the return. In the earlier year, the assessee had disclosed agricultural income at Rs. 5 lakhs which was accepted by the revenue. The assessee is a senior citizen and an agriculturist. The assessee has only bank interest income and agricultural income. Despite the explanation given by the assessee in this regard, merely because cash was deposited during demonetization period, a sum of Rs. 7,50,000/- was treated as unexplained money in the hands of the assessee u/s 69A read with Section 115BBE of the Act by the ld AO, which stood upheld by the ld NFAC.

As stated supra, the assessee’s agricultural income disclosed in the return for the year and for the immediately preceding year explains the source of cash deposits made in the bank account. Hence, there is no question of treating the cash deposit as unexplained money u/s 69A of the Act. Accordingly, the grounds raised by the assessee are allowed.

In the result, appeal of the assessee is allowed.