Anandi Vs ITO (ITAT Delhi)
Factual Background and Addition
The Assessee, an individual who is a retired government servant, filed her Return of Income declaring a total income of . Her case was selected for scrutiny due to a large value of cash deposited in SBN during the demonetisation period, which was substantial compared to her declared income. The total cash deposited was .
After considering the Assessee’s submissions, the AO accepted a deposit of as genuine but deemed the remaining as unexplained money. Consequently, the AO made an addition of under Section 69A of the Income Tax Act, 1961, read with Section 115BBE, which levies tax at a higher rate on unexplained cash credits.
The Assessee appealed this order to the Commissioner of Income Tax (Appeals) [CIT(A)], who dismissed the appeal, thus confirming the addition made by the AO. Aggrieved, the Assessee brought the matter before the ITAT.
Assessee’s Contentions
Before the Tribunal, the Assessee’s Authorized Representative (AR) argued that the cash deposited represented the accumulation of savings and past withdrawals. Specifically, the AR submitted the following points:
1. The Assessee, a retired government servant, had accumulated savings from her service and from previous cash withdrawals made from her bank account on various dates for contingencies.
2. She was also in receipt of cash on many occasions as per customary traditions in Indian families, which were saved and accumulated.
3. The Assessee was around 62 years of age when demonetisation was announced, and considering her old age, an accumulation of savings amounting to approximately (referring to the total accepted and disputed amount) was reasonable.
4. The Assessee is unmarried and has no major liabilities, allowing her to save the amounts received from family members.
5. An affidavit was filed before the lower authorities confirming these facts, but it was rejected without any contradictory material being presented by the department.
Tribunal’s Findings and Judicial Precedent
