SHRI RAJESH GUPTA,JAMMU vs. DEPUTY COMMISSIONE OF INCOME TAX CENTRAL CIRCLE, JAMMU

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ITA 450/ASR/2019Status: DisposedITAT Amritsar15 November 2022AY 2017-183 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal considered the amount as personal savings and found no prohibition in using personal money for business or depositing it in a business account, as the source was not disputed. Therefore, the addition was deleted.

What were the facts?

The assessee deposited Rs. 38,000 in demonetized currency mixed with other notes into their bank account. The CIT(A) confirmed the addition as unexplained cash deposit.

What were the issues?

Whether the deposit of demonetized currency, explained as personal savings mixed with business cash, constitutes an unexplained cash deposit warranting addition.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE

Hearing: 09.11.2022Pronounced: 15.11.2022

The present appeal has been filed by the assessee against the order dated 29.04.2019 passed by the ld. Commissioner of Income Tax (Appeals)-5, Ludhiana in respect of Assessment Year 2017-18.

2.

The assessee has raised the following grounds of appeal:

Rajesh Gupta v. DCIT “1. That the worthy CIT(A) is not justified in confirming an addition of Rs.38,000/- on account of cash deposited in Bank on 17.12.2016 when the reason of depositing this amount of demonetized currency stands substantiated and accepted. That the appellant craves, leave to alter, amend and add to substitute any ground of appeal before or at the time of hearing.”

3.

The Ld. CIT(A) confirmed an addition of Rs. 38,000/-, by concurring with the AO that it was an unexplained cash deposit in bank by the assessee as this much of demonetized currency got mixed-up with 100 rupee notes and hence deposited on 17.12.2016.

4.

Having heard both the sides on the issue, we consider the amount of Rs. 38,000/- out of assessee’s personal savings although, the assessee deposited the same as his business cash. In our view, there is nothing wrong and no prohibition on either use of personal money for business or deposing it in the business/current account legally. What is important is source of the money/cash which is not disputed. Therefore, we do not concur with finding of the CIT(A) and accordingly, the addition of Rs. 38,000/- is deleted.

5.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 15.11.2022

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