Usha Gupta Vs ITO (ITAT Chandigarh)
Kirana Cash Is Not Contraband—Audited Sales Cannot Become Unexplained Money Merely Because Deposited During Demonetisation u/ss 68 &; 69A
A Wrong PAN Opens the Cash Box
The controversy began during scrutiny proceedings in the case of the Assessee’s husband, Shri Chaman Lal Gupta. The Department noticed cash deposits in an SBI account & sought an explanation from him.
He explained that the bank account actually belonged to his wife, Smt. Usha Gupta, proprietor of M/s Vikki Traders, & that his PAN had been wrongly mapped to the account by the bank. The bank confirmed this factual position.
Information concerning cash deposits of ₹13,71,060 during the demonetisation period was thereafter transferred to the Assessee’s case & reassessment proceedings were initiated by issuing notice u/s 148.
First Assessment: Only SBN Deposits Added u/s 69A
The Assessee was carrying on the business of a Kirana & general merchandise shop. Her total disclosed turnover for the year was ₹1,05,95,395. The books were audited & the audit report was furnished.
During reassessment, it was found that out of total cash deposits of ₹13.71 lakh, only ₹2,25,000 represented Specified Bank Notes. The balance deposits were not in demonetised currency. The Assessee explained that the deposits represented cash sale proceeds arising from her regular business.
