Case Law Details
Tilak Raj Anand Vs ITO (ITAT Delhi)
Assessing Officer issued a show cause to explain the cash deposit of Rs. 9,00,000/- in specified bank notes in the bank account during the demonetization. The contention of the assessee before the authorities below was that all the relevant documents in the nature of ledger, cash book, sales, purchases, cash flow were filed and no objection was raised by the Assessing Authority.
It was further contended that the assessee accepted the source of deposit of Rs. 5,00,000/- on 16.11.2016 but treated Rs. 4,00,000/- deposited on 22.11.2016 as unexplained. The basis of the addition is that it is against the normal understanding that the assessee should have deposited the amount in one day.
I find that the Assessing officer has not given any finding regarding the availability of cash with the assessee prior to the demonetization. If an assessee has cash available prior to demonetization and if he opted to deposit the same multiple times, there is no prohibition in law for such deposits.
The fundamental question would be whether the assessee was having the explained cash which was deposited in his bank account. The Authorities below have not commented anything adverse on the evidences filed by the assessee regarding availability of cash and correctness of the cash flow statement.
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