Suresh Surindersing Yadav Vs ITO (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has provided relief to assessee Suresh Surindersing Yadav by deleting an addition of ₹29,24,571 made to his income on account of unexplained cash deposits. The case pertains to the Assessment Year (A.Y.) 2017-18, a period that notably included the demonetization drive. The ITAT’s decision hinged on the assessee’s explanation that the cash deposits originated from prior withdrawals from the same bank accounts, maintained for medical emergencies.
The genesis of the dispute lies in the assessment proceedings for A.Y. 2017-18. The assessee had filed his return declaring an income of ₹25,93,460. His return was selected for scrutiny due to significant cash deposits, totaling ₹59,67,000, which included ₹34,50,000 deposited during the demonetization period across three different savings bank accounts with DCB Bank. When asked to explain the source of these deposits, the assessee contended that the cash originated from an opening cash in hand balance and substantial prior cash withdrawals from the same bank accounts. He further explained that due to a prevailing medical ailment, a significant amount of cash was kept readily available to address any potential medical emergencies.
The Assessing Officer (AO), however, was not convinced by the assessee’s explanation and treated the entire ₹59,67,000 as unexplained cash under Section 69A of the Income Tax Act, 1961, levying tax under Section 115BBE. On appeal, the Commissioner of Income Tax (Appeals) [CIT(A)] granted partial relief, accepting the availability of ₹30,42,429 as cash in hand but sustained the balance addition of ₹29,24,571. The assessee subsequently appealed this sustained addition before the ITAT.
