PERNIKA GUPTA,NEW DELHI vs. ACIT, CENTRAL CIRCLE, KARNAL

The Ld. Counsel submitted that except ground no. 5 & 6 the assessee does not want to press other grounds of appeal. Ld. Counsel submitted that the assessee is an individual and Assessing Officer made addition of Rs.2,40,000/- on account of cash 1 deposited in the bank account of assessee during demonetization period and there was CBDT Instruction No. 3/2017 by which the tax authorities were directed not to undertake any investigation or action in the cases of individuals where the cash deposits are less than Rs.2,50,000/-. Therefore, the appeal of assessee may kindly be allowed and AO may kindly be directed to delete the addition.

Replying to the above, the Ld. CIT-DR supported the orders of the authorities below. However, he did not controvert that there is CBDT Instruction (supra) directing the tax authorities not to investigate and take action in the cases where cash deposits are less than Rs.2,50,000/- during demonetization period.

In view of above, since the cash deposits by the individual assessee, in the present case, is Rs.2,40,000/- which is less than the prescribed limit as per the CBDT Instruction No. 3/2017 para 1.1 of guide line. Therefore, the sole grievance of assessee is allowed and AO is directed to delete the addition.

In the result, appeal of the assessee is allowed.