Shravan Singh Parmar Vs ITO (ITAT Mumbai)
ITAT Mumbai held that addition under section 69A of the Income Tax Act towards cash deposited in the bank account during demonetization period deleted since source of cash deposit duly explained.
Facts- Assessee has preferred the present appeal. The only grievance raised by the assessee, in the present appeal, is against the addition of Rs.12,24,500/- under section 69A of the Income Tax Act on account of cash deposits in the bank account during the demonetization period.
Conclusion- The Co-ordinate Bench of the Tribunal in TamilNadu State Marketing Corporation Ltd. vs. ACIT has held that merely for the reason that there is a violation of certain notifications/GO issued by the Government in transacting with Specified Bank Notes, the genuine explanation offered by the assessee towards the source of cash deposit cannot be rejected, unless the AO makes out the case that the assessee has deposited unaccounted cash into bank account in Specified Bank Notes.
Held that the assessee has duly explained the source of cash deposited by him in his bank account during the demonetization period, and same cannot be treated as unexplained money under section 69A of the Act. Accordingly, the impugned addition of Rs.12,24,500/- made by the AO, being the cash deposits in the bank account during the demonetization period under section 69A of the Act, is deleted. Accordingly, the sole issue raised by the assessee in the present appeal is allowed. As a result, the grounds no.2 and 3 raised by the assessee are allowed.
