Case Law Details
Sudhir Kumar Tiwari Vs ITO (ITAT Allahabad)
It is apparent that the Assessing Officer initially initiated the scrutiny proceedings to examine the cash deposit of Rs. 18,00,000/- during the demonetization period. However, on verification of the bank account as well as the reply of the assessee as well as bank, the Assessing Officer found that there was deposit of Rs. 1,00,000/- only in the bank account of the assessee during the demonetization period. Thus, prima facie the basis of limited scrutiny itself was no more in existence when it was taken up for verification of deposit of Rs. 18,00,000/- during the demonetization period and not Rs. 1,00,000/-.
ITAT held that Once, the assessee has explained before the CIT(A) that the cash was deposited in the bank account after the demonetization as it was required to deposit in the bank otherwise the value of the currency would be zero and keeping the same with the assessee would be illegal. The assessee has declared this deposit in the return of income and therefore, the explanation of the source as past saving of the assessee HUF and its members cannot be doubted having regard to the fact that in the past there are the entries of withdrawal of more than 1,00,000/- from the bank account of the assessee. Though, these withdrawals were in the long past and there is a big gap between the withdrawals and deposits but once the assessee has declared this amount of Rs. 1,00,000/- and by considering this amount as well as the total income declared by the assessee at Rs. 1,39,090/- which is below a minimum amount of taxable income the assessment of the income of the assessee under the provisions of section 11 5BBE is not justified. Accordingly, in the facts and circumstances of the case when the assessee has explained the source of Rs. 1,00,000/- as past savings of the assessee HUF and its members and there is no other deposits during the demonetization the addition made by the Assessing Officer is deleted. The appeal of the assessee is allowed.
FULL TEXT OF THE ORDER OF ITAT ALLAHABAD
This appeal by the assessee is directed against the order dated 20.05.2022 of CIT(A)(National Faceless Appeal Centre, Delhi) for the assessment years 2017-18. The assessee has raised the following grounds:-
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