Smt. Sunita Sherwani Vs ITO (ITAT Raipur)
ITAT Raipur held that addition towards cash deposited during demonization period partly set aside based on CBDT Instruction No. 03/2017 dated 21.02.2017. Accordingly, appeal of assessee partly allowed.
Facts- During the course of assessment proceedings, AO observed that the assessee had made cash deposits of 11,00,000/- in her bank account. Not being satisfied with the reply of the assessee, AO made addition of the entire amount by treating it as the assessee’s unexplained money u/s. 69A of the Act.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that that in the backdrop of the aforesaid CBDT Instruction No.03/2017, it can safely be concluded that she would have been at the relevant point of time in possession of cash in hand of Rs.3.50 Accordingly, in the backdrop of my aforesaid observations, the availability of cash with the assessee as on the date of cash deposits which would have sourced the cash deposits of Rs.11 lacs (supra) in her bank account with Allahabad Bank, Raipur is restricted to the extent of Rs.3,50,000/-. Hence, I sustain the addition of Rs.7,50,000/- [ Rs.11,00,000 (-) Rs.3,50,000/-]. Thus, the Grounds of appeal raised by the assessee is partly allowed in terms of the aforesaid observations.
