AO exceeded jurisdiction in verifying demonetisation cash deposit below ₹2.5 lakhs

Smt. Goworamma Lingappa Manjula Vs ITO (ITAT Bangalore) In the case of Smt. Goworamma Lingappa Manjula Vs ITO (ITAT Bangalore), the ITAT ruled that the Assessing Officer (AO) exceeded his jurisdiction by verifying a demonetisation cash deposit of Rs. 1,73,935, which is below the Rs. 2.5 lakh threshold set by CBDT Instruction No. 3 of 2017. The CBDT guidelines specify that no further verification is needed for cash deposits up to Rs. 2.5 lakhs for individuals without business income. The AO’s assessment of the cash deposit as unexplained income was therefore deemed improper. The appeal wa...