Section 69A Addition unsustainable as cash withdrawn was more than deposits due to demonetization

Ajit Bapu Satam Vs DCIT (ITAT Mumbai)

Held that cash withdrawn by the assessee from the bank was much more than the amount deposited due to demonetization. Further, there is no findings by the authorities that this cash available with the assessee was invested or utilised for any other purpose. Hence, addition u/s 69A unsustainable

Facts- Assessee made cash deposits of Rs. 20 Lakhs in his bank account during the demonetization period. AO treated the said cash deposits as unexplained money and added the same to the total income of the assessee u/s 69A of the Act. CIT(A) also dismissed the appeal. Being aggrieved, the assessee preferred the present appeal.

Assessee alleged that the cash which was withdrawn by the assessee from the bank was deposited in the very same bank account.

Conclusion- Held that it is evident that the amount withdrawn by the assessee was much more than the amount deposited in the very same bank account due to demonetisation. Further, in the present case, the Revenue has not brought anything on record to show that the cash which was withdrawn by the assessee was already utilised for any other purpose. The Revenue merely presumed that the cash withdrawn by the assessee from 28/07/2016 till 28/10/2016 was utilised by the assessee, without bringing anything on record.

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