Dhirajlal Bhagwanbhai Talaviya Vs ITO (ITAT Surat)
ITAT Surat Held that Central Board of Direct Tax (CBDT) in its Circular No.3 of 2017, on the issue of cash deposit during demonetization directed to accept the cash deposit up to Rs.2,50,000/-. Thus, addition u/s. 69A reduced by Rs. 2,50,000/- and added the balanced amount.
Facts- The case of the assessee was selected for scrutiny for the reasons of cash deposit during the demonetization. During assessment, AO noted that assessee have made cash deposit of Rs.10,50,000/- in his bank account. AO treated the entire cash deposit as unexplained money and u/s 69A of the Act and taxed the same u/s. 115BBE, in the assessment order dated 08.12.2019 passed u/s 143(3) of the Act.
CIT(A) held that since the assessee failed to substantiate the source of cash deposit, thus, it was a fit case for making addition of Rs.10,50,000/-. CIT(A) further held that on perusal of computation of income, the assessed income is of Rs.15,94,360/. However, the calculation of tax contains certain errors. Thus, AO was directed to make fresh calculation of tax. However, no specific finding in taxing the addition at enhanced rate was given. Further aggrieved, the assessee has filed present appeal before Tribunal.
