Smt. Goworamma Lingappa Manjula Vs ITO (ITAT Bangalore)
In the case of Smt. Goworamma Lingappa Manjula Vs ITO (ITAT Bangalore), the ITAT ruled that the Assessing Officer (AO) exceeded his jurisdiction by verifying a demonetisation cash deposit of Rs. 1,73,935, which is below the Rs. 2.5 lakh threshold set by CBDT Instruction No. 3 of 2017. The CBDT guidelines specify that no further verification is needed for cash deposits up to Rs. 2.5 lakhs for individuals without business income. The AO’s assessment of the cash deposit as unexplained income was therefore deemed improper. The appeal was allowed, and the ITAT emphasized the binding nature of the CBDT instructions on such matters.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
The present appeal of the assessee is arising from the order passed by the Addl/JCIT (A), Gwalior dated 21/02/2024 in DIN No. ITBA/ APL/S/ 250/2023-24/1061269696(1) for the assessment year 2017-18.
2. Facts of the case are that the assessee is a lady could not file income tax return for the year under consideration and has deposited an amount of Rs.1 ,73,985/- in her Canara Bank account and Karnataka State Co-operative Apex Bank. After receiving the information from the Department, the AO assumed jurisdiction over the assessee’s case and completed the assessment ex-parte. During the course of assessment proceedings the AO observed that assessee has deposited an amount of Rs 1,73,935/- in her bank accounts maintained with Canra Bank and Karntaka State Cooperative Apex Bank. The AO added this amount as unexplained cash and framed the assessment.
