Vittalappa Ganesha Vs ITO (ITAT Bangalore)
ITAT Bangalore held that addition under section 69A towards cash deposits during demonetization deleted since cash deposit was made out of earlier withdrawals. Accordingly, appeal allowed and addition deleted.
Facts- The assessee is a working partner in the partnership firm. The case of the assessee was selected for limited scrutiny under CASS for verification of cash deposit made during the demonetization period. AO concluded the assessment and held that assessee’s explanation that the cash deposit of Rs.15 lakhs is made out of the withdrawals is not acceptable. Accordingly, the cash deposit made on 16.11.2016 amounting to Rs.15 lakhs was treated as unexplained money as per the provisions contained in section 69A of the Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that from the statement of bank account, we also note that assessee has withdrawn cash prior to demonetization date. It is but natural that the assessee would deposit the unused cash back to the bank account as the old notes were no longer legal tender. We also note that ld. AO has not produced or brought on record any evidence against the explanation in order to disregard the cash availability being earlier withdrawals in the hands of the assessee. There has been no cash that has been otherwise unearthed during the assessment proceedings. In these circumstances, anything contrary brought on record by the AO, we are of the view that AO has not made out a case calling for an addition u/s 69A of the Act.
