Deven Chaudhary Vs DCIT (ITAT Agra)
Survey Surrender Explains Demonetisation Cash: ITAT Agra Deletes ₹75 L Addition & 115BBE Tax
In Deven Chaudhary vs. DCIT, Circle-1(3)(1), Mathura (ITA No. 08/Agr/2025) and Sudhir Chaudhary vs. DCIT (ITA No. 246/Agr/2025), AY 2017-18; order dated 29-12-2025, the Agra Bench of the ITAT granted complete relief in respect of cash deposits during demonetisation. The Assessing Officer had treated ₹75,00,000 deposited during the demonetisation period as unexplained money u/s 69A and taxed it u/s 115BBE, rejecting the Assessees’ explanation that the cash came from income surrendered during survey in AY 2014-15 (₹1.30 crore), which had been accepted by the Department.
The Tribunal noted that the survey surrender stood accepted in earlier assessment proceedings and the Assessees consistently explained—supported by statements on oath and cash-flow—that the surrendered amount was received back in cash (from a failed property transaction) and remained available for deposit. Relying on settled law (including S.R. Venkataratnam and Motherson Jones Ltd.), the ITAT held that mere disbelief about keeping cash for a period cannot substitute proof, and the burden was on Revenue to show that the surrendered cash had been otherwise utilised—something it failed to do. Accordingly, the ₹75 lakh addition u/s 69A was deleted.
On taxability, following the Madras High Court in S.M.I.L.E. Microfinance Ltd., the ITAT further held that section 115BBE is prospective and cannot be invoked for the year under appeal. Given identical facts, both appeals were allowed in full.
FULL TEXT OF THE ORDER OF ITAT AGRA
Both these appeals have been filed by two different assessees against separate orders of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 08.11.2024 and 05.03.2025 respectively, for the Assessment Year 2017-18.
