Ashok Ravsaheb Tambe Vs ITO (ITAT Pune)
In a recent judgment, the Income Tax Appellate Tribunal (ITAT) Pune delivered a significant ruling in the case of Ashok Ravsaheb Tambe Vs ITO, where the Tribunal deleted an addition made by the Assessing Officer (AO) regarding cash deposits during the demonetization period. The case revolves around the explanation provided by the assessee for cash deposits, which were allegedly sourced from a gold loan obtained prior to demonetization.
Case Background
The assessee, Ashok Ravsaheb Tambe, filed his return of income for the assessment year 2017-18, declaring a total income of ₹1,98,650/-. During scrutiny, the Income Tax Officer (ITO), Ward-3(1), Nashik, questioned the source of cash deposits amounting to ₹7,51,939/- made by the assessee into his bank account with Nashik Merchant Co-op. Bank Ltd. The AO treated these deposits as unexplained money under Section 69A of the Income Tax Act, 1961, and subjected them to tax under Section 115BBE of the Act.
Proceedings Before CIT(A)
The assessee’s appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] was unsuccessful, leading him to appeal to the ITAT Pune. The primary contention was that the cash deposits in question were sourced from a gold loan of ₹8,50,000/- taken on May 12, 2016, from the same bank. The loan was originally intended for his daughter’s marriage, but plans changed as she pursued further education. Consequently, the remaining cash was deposited back into the bank account during the demonetization period.
