Kalyanasundaravalli Premanandhan Vs ITO (ITAT Chennai)
ITAT Chennai held that addition under section 69A of the Income Tax Act towards cash deposit during demonetization not justified since assessee has sufficiently explained that the said deposit is from earlier withdrawal. Accordingly, appeal allowed.
Facts- The Appellant is an individual assessee, being a salaried employee, deriving income solely from salary and interest from savings and time deposits. During scrutiny assessment, it was noticed that assessee has made cash deposit of ₹15,30,000/- in her Bank account on 30.11.2016. AO disregarded the explanation and treated the deposit as unexplained money under section 69A of the Act.
CIT(A) dismissed the appeal. Being aggrieved, assessee has preferred the present appeal.
Conclusion- Held that the assessee has a prudent explanation for the cash deposit in bank account. Therefore, we find that the above submissions and cash flow and Bank statement and case laws, the cash deposit of Rs.15,30,000/-in the assessee’s bank account on 30.11.2016 is genuinely explained by the assessee. Hence, we direct the AO to delete the addition u/s 69A of the Act. In result, appeal of the assessee is allowed.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [‘CIT(A)’ in short] dated 11.02.2025 for Assessment Year 2017-18.
