Arun BUSSI Vs ACIT (ITAT Delhi)
The case before the Income Tax Appellate Tribunal Delhi involved two interconnected appeals arising from orders passed under Section 250 of the Income Tax Act, 1961. The primary issue concerned an addition of ₹11,18,500 made by the Assessing Officer on account of cash deposits during the demonetization period in November–December 2016. The assessee, a non-resident Indian residing in the United States, explained through an affidavit that the deposited amount represented accumulated cash given to his aged parents over several years through remittances and personal visits to India. The funds were reportedly withdrawn from his US bank account, brought to India during visits between financial years 2013–14 and 2016–17, and retained by his parents for their needs. During his visit to India in November–December 2016, the assessee deposited the unutilized cash lying with his parents into his bank account due to demonetization.
The Assessing Officer rejected the explanation and treated the deposit as unexplained income. The assessee contended that sufficient evidence had been provided, including money transfer receipts, bank statements, and passport records, demonstrating the source and movement of funds. It was also argued that neither the assessee nor his family had any income source in India except bank interest, and therefore the explanation of foreign remittances was credible. Additionally, in a connected appeal, the assessee challenged the application of Section 115BBE for taxing the addition at a higher rate, asserting that the provision was introduced from 01.04.2017 and was debatable in its applicability.
