Loading judgment…
Facts
The assessee deposited Rs. 11.45 lakhs in cash during demonetization. The lower authorities treated this deposit as unexplained. The assessee withdrew substantial amounts of cash prior to demonetization.
Held
The Tribunal held that the cash deposit was part of the previously withdrawn cash, and therefore, could not be treated as unexplained. The impugned addition was deleted.
Key Issues
Whether cash deposits during demonetization, which can be correlated with prior cash withdrawals, can be treated as unexplained income.
Sections Cited
147, 271AAC1
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R PER SATBEER SINGH GODARA, J.M: These assessee’s twin appeals & 4724/Del/2025 for A.Y. 2017-18 arise against CIT(A)/NFAC Delhi’s as many DIN & Order Nos. ITBA/NFAC/S/250/2025-26/1076237982(1) dated 15.05.2025 & ITBA/NFAC/S/250/2025-26/1078709868(1), dated 21.07.2025 in proceedings u/s 147 and 271AAC1 of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’, respectively.
Heard both the parties. Case files perused. 2. The assessee’s quantum appeal ITA 4723/Del/2025 is directed against both the learned lower authorities’ action treating her cash deposit during demonetization of Rs. 11.45 lakhs as unexplained; in assessment order dated 12.05.2023, and upheld in the lower appellate discussion.
& 4724/Del/2025 3. Faced with this situation, it is noticed from a perusal of the assessee’s bank statement that she, inter alia, had withdrawn amount of Rs. 5 lakh in cash on 10.10.2016; Rs. 3 lakhs on 14.10.2016; Rs. 3,20,000/- on 15.10.2016; Rs. 3.5 lakhs and Rs. 50,000/- on 17.10.2016; Rs. 5 lakhs on 24.10.2016; respectively before demonetization. Necessary inference which would therefore arise is that her impugned cash deposit during demonetization form part of the cash withdrawals which could not have been treated as unexplained in both the lower proceedings. The impugned addition is deleted therefore. The assessee succeeds in her quantum appeal in very terms.
Same order to follow in assessee’s penalty appeal being consequential in nature.
These assessee’s twin appeals & 4724/Del/2025 are allowed in very terms. A copy of this common order be placed in the respective case files.
Order pronounced in open court on 28.08.2025.