Ramanbhai P. Viradiya HUF Vs ITO (ITAT Surat)
The appeal concerned addition of ₹12.50 lakh treated as unexplained cash under section 68 for AY 2017–18, arising from cash deposits during the demonetization period. The case was selected for limited scrutiny. The assessee explained that the deposits came from agricultural income, supported by ownership of over three hectares of land, crop sales such as cotton, corresponding withdrawals, and documentary evidence including bills and vouchers. The Tribunal found the explanation satisfactory and held that the cash deposits were properly explained. The addition was deleted and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT SURAT
This is an appeal filed against the order dated 27-09-2024 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2017-18.
2. The assessee has shown agricultural income at Rs. 1,87,925/-. The assessee’s case was selected for limited scrutiny to verify the cash deposit during demonetization period. The Assessing Officer made addition of Rs. 12,50,000/- deposited in the Allahabad Bank and added the same as unexplained u/s. 68 of the Act. The assessee has given the details related to the cash deposit and the corresponding withdrawals and also submitted that the assessee has more than 3 hectares and from time to time deriving cash from sale of crops such as cotton. The assessee has submitted relevant bills, vouchers and other documents to prove the cash deposits. Hence, we hold that the cash deposits were properly explained by the assessee.
