Salama Mahmadsalim Dafedar Vs ITO (ITAT Panaji)
Mother-in-Law’s Gold Had a Name, Anonymous Cash Sales Did Not: ITAT Grants Partial Relief from Demonetisation Addition u/s 69A
Cash Deposit During Demonetisation
The assessee was an individual engaged in the business of jewellery making & sale of gold. She filed her return of income for AY 2017-18 on 16.12.2017, declaring a total income of ₹4,93,850.
The return was initially processed u/s 143(1). Subsequently, the case was selected for scrutiny & notices u/ss 143(2) & 142(1) were issued, calling upon the assessee to furnish particulars of the cash deposited during the demonetisation period & explain the corresponding sources.
The AO noticed that the assessee had deposited ₹32,00,000 in cash on 10.11.2016 in her bank account maintained with Syndicate Bank.
AO Accepts Part of the Explanation
During assessment proceedings, the assessee explained that the deposited cash was sourced from the opening cash balance, proceeds from the sale of gold & maturity proceeds of a Pigmy deposit.
After examining the explanation, the AO accepted the availability of cash to the extent of ₹12,84,310, consisting of:
₹4,66,275 representing the opening cash balance; ₹6,51,200 representing proceeds from the sale of gold; & ₹1,66,835 representing withdrawal of Pigmy deposit maturity proceeds.
