Smt. Perminder Kaur Matharoo Vs ITO (ITAT Delhi)
ITAT held that Once cash flow statement is not controverted by the Assessing Officer as well as the ld. CIT[A], the addition of such cash deposit is not valid
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is preferred against the order dated 26.05.2021 framed by the National Faceless Appeal Centre FAC] pertaining to A.Y. 2017-18.
2. Since Ground No. 1 has not been pressed by the ld. counsel for the assessee, the solitary grievance of the assessee revolves around the addition of Rs. 7,65,000/– sustained by the NFAC against total addition of Rs.11,90,179/–.
3. Briefly stated, the facts of the case are that the assessee filed her return of income on 27.06.2017 declaring income at Rs. 7,92,90/–. The assessee returned rental income and income from other sources. The return of income was selected for scrutiny assessment for scrutiny of cash deposit during demonetization period and, accordingly, the assessee was show caused to furnish explanation regarding cash deposit during demonetization period.
4. In response, the assessee submitted that cash deposit was out of opening cash in hand and cash withdrawals during the year under consideration prior to demonetization.
5. Reply of the assessee was duly considered by the Assessing Officer who was of the opinion that other than the opening cash in hand of Rs. 8,34,821/–, the assessee could not explain satisfactorily the source of cash deposit of Rs.11,90,179/–.
6. The Assessing Officer completed assessment proceedings by accepting the opening cash in hand of Rs. 8,34,821/– and made addition of Rs.11,90, 79/– under section 69A r.w.s 115BBE of the Act.
7. The assessee carried the matter before the ld. CIT(A) and once again furnished all the details explaining the source of cash deposit in the bank account.
8. It was once again explained that other than the opening cash in hand of Rs. 8,34,821/–, all other deposits have been made out of cash withdrawals from the bank during the financial year. In support, cash flow statement along with statement of affairs was also filed by the assessee.
9. After considering the facts and submissions, the ld. CIT(A) completely disregarded the findings of the Assessing Officer and gave a different colour to the entire proceedings by stating that the opening cash balance of Rs. 8,34,821/– has not been declared in the return of income filed online.
10. Out of the total cash withdrawals available with the assessee, the ld. CIT(A) deducted monthly expenses at Rs.30,000/– per month and estimated availability of cash as under:
