Vishnusharan Chandravanshi Vs ITO (ITAT Raipur)
The appeal before the Tribunal arose from the order of the Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre (NFAC), dated 12.01.2024, which originated from an ex-parte assessment order passed under Section 144 of the Income-tax Act, 1961 dated 23.11.2019 for Assessment Year 2017–18. The Assessing Officer had made an addition of Rs. 10,00,000 under Section 69A, treating cash deposits made during the demonetization period as unexplained money.
Information was received under “Operation Clean Money” that the assessee had deposited Rs. 10 lakh in old currency notes between 09.11.2016 and 30.12.2016 in his bank account with Central Bank of India, Kawardha branch, but had not filed a return of income for A.Y. 2017–18. A notice under Section 142(1) was issued directing the assessee to file his return. As there was no compliance, the assessment was completed ex-parte under Section 144.
Before the Assessing Officer, the assessee claimed that the cash deposits were sourced from agricultural income from 33 acres of self-cultivated land. He also stated that he had sold land at Village Manpur on 08.03.2017 and that the sale consideration had been received earlier on 06.06.2016. It was further submitted that the cash deposit of Rs. 10 lakh on 10.11.2016 was sourced from prior withdrawals from the same bank account. However, as the assessee failed to substantiate these claims with documentary evidence, the Assessing Officer treated the entire deposit of Rs. 10 lakh as unexplained money under Section 69A.
