GULKANDI DEVI,DELHI vs. ITO WARD 51(5), DELHI

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 28.03.2025, for Assessment Year 2017-18.

Shri R.R Gupta, appearing on behalf of the assessee submitted that the assessee is a senior citizen aged about 82 years. Addition of Rs.13,45,000/- is made by the Assessing Officer (AO) on account of unexplained cash deposits in the bank accounts of the assessee during demonetization. The AO had made addition u/s. 69A r.w.s.115BBE of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) in an ex-parte proceedings. Aggrieved by the assessment order dated 07.12.2019, the assessee carried the issue in appeal before the CIT(A). The (AY 2017-18) assessee filed additional evidences before the First Appellate Authority explaining the source of cash deposits. The CIT(A) sought remand report from the AO. The CIT(A) upheld the addition made by AO and only restored the issue for verification of demand raised in the demand notice. He pointed that though in the assessment order addition is made by the AO to the extent of Rs.13,45,000/-, however, in the demand notice, the AO raised demand of Rs.41,61,200/-. 2.1. The ld. AR of the assessee submitted that the assessee could not participate in the assessment proceedings as no notice u/s. 143(2) or 143(1) of the Act was ever served on the assessee. Even the copy of assessment order was not received by the assessee. The assessee came to know about the assessment order after her bank accounts were attached by the Department. Explaining source of cash deposit, the ld. AR submitted that the assessee had three bank accounts. The assessee deposited Rs.13,45,000/- in the said bank accounts as under:- S.No Cash deposit during A/c number Bank demonetization period (Rs.) 1 9,00,000/- 030710100030363 Andhra Bank 2 2,00,000/- 11405865476 State of Bank of India 3 2,45,000/- 8082010010500 Oriental Bank of Commerce 3. The only source of income of the assessee is rental income and the assessee has been receiving rent primarily in cash. Since, the assessee is a super senior citizen and a widow lady, she preferred to keep cash with herself for family expenditure and to meet medical emergencies. The cash deposits are from the past savings from rental income received by the assessee in preceding assessment years. The ld. AR further pointed that the assessee has been filling her return of income regularly and has disclosed income from house property. The ld. AR referred to the table at page no.12 of the impugned order, wherein, details of the (AY 2017-18) income in the preceding assessment years that were offered to tax. The ld. AR further submitted that while depositing cash in the bank accounts during the period of demonetarization, the assessee had disclosed in cash transaction form 2016 the source cash deposits as past savings Rs.9,25,000/- and current year income of Rs.430,000/- .