Case Law Details
Mahendra Kumar Parakh Vs ITO (ITAT Kolkata)
The sole issue in the present appeal is in respect of cash deposit made during the demonetization period and it is an undisputed fact that the assessee has deposited a sum of Rs. 2,50,000/- only in cash in his bank account during such period and the ld. AO treated the entire amount as unexplained in the hands of assessee. The matter of the assessee when it was carried before the ld. CIT(A), the ld. CIT(A) granted partial relief to the assessee to the tune of Rs. 25,763/- and upheld the addition to the extent of Rs. 2,50,000/-. By stating that cash deposit made during the demonetization period was Rs. 2,50,000/- and the ld. AO has wrongly taken the figure of Rs. 2,75,763/- while framing the assessment order. Before us, the assessee has submitted that cash deposit by assessee during the period of demonetization to be out of past accumulated savings and the assessee is a regular tax payer filed its return of income in due course. Considering the aforesaid submission and perusing the material available on record and in view of the CBDT Circular (supra) relying on the decision of co-ordinate bench of Agra in the case of Smt. Uma Agrawal (supra), we are of the considered view that the explanation of the assessee about the source of cash deposit cannot be brushed aside without there being any evidence to the contrary. We, therefore, direct the AO to delete the addition of Rs. 2,50,000/- as upheld by the ld. CIT(A), thus the grounds of appeal taken by the assessee is allowed.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This appeal in ITA No. 697/Kol/2022 for A.Y. 2017-18 is preferred by the assessee against the order of the Commissioner of Income Tax, National Faceless Appeal Centre, Delhi (NFAC) [Ld. CIT in short], dated 24.09.2022. The assessee has raised the following grounds of appeal:
“1. That on the facts and circumstances of the case, the Ld. CIT (Appeals) was not justified on facts and in law in not accepting appellants explanation about cash deposit of Rs. 2,50,000/- in bank during demonetization period and treating the cash deposit as unexplained money u/s 69A. The addition may kindly be deleted and suitable relief be allowed.
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