Burden to establish genuineness of deposit during demonetization period lies on assessee

Neralakere Marulasiddappa Dayananda Vs ITO (ITAT Bangalore)

ITAT Bangalore Held that not every deposit during the demonetization period would fall under category of unaccounted cash. However the burden is on the assessee to establish the genuineness of the deposit in order to fall outside the scope of unaccounted cash. Matter remanded for re-verification.

Facts- The assessee vide the present appeal has mainly contested addition of cash deposited during demonetization period into bank account. It was stated that the amount deposited was from agricultural proceeds only. However AO confirmed the addition stating that assessee failed to furnish any satisfactory explanation with documentary evidences regarding the nature and source of cash deposits.

Conclusion- Held that not every deposit during the demonetization period would fall under category of unaccounted cash. However the burden is on the assessee to establish the genuineness of the deposit in order to fall outside the scope of unaccounted cash. The Ld.AO shall verify all the details/evidences filed by the assessee based on the above direction and applicable instruction, to the facts and circumstances of the present assessee and to consider the claim in accordance with law. In the result, the appeal filed by the assessee stands partly allowed for statistical purposes

FULL TEXT OF THE ORDER OF ITAT BANGALORE

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