Tapas Kundu Vs ITO (ITAT Kolkata)
Old Cash Withdrawals Can’t Explain Demonetisation Deposits: Section 69A Addition Sustained
Assessee deposited cash of Rs.39.22 lakh during demonetisation period & explained source as past cash withdrawals from salary bank account made during FYs 2014-15 to 2016-17, contending that due to matrimonial dispute & legal advice, salary was withdrawn & kept as cash at home. AO accepted withdrawals only to limited extent, estimated personal expenditure & treated balance cash deposit of Rs.32.68 lakh as unexplained money u/s 69A, taxable u/s 115BBE.
CIT(A) partly granted relief by reducing estimated personal expenditure & allowed set-off of additional Rs.6 lakh, but confirmed addition of Rs.26.68 lakh, holding that explanation of long-past withdrawals & retention of cash was not convincing.
ITAT upheld CIT(A). Tribunal held that cash withdrawals made 5–7 years prior to demonetisation cannot automatically explain cash deposits during demonetisation period, especially when Assessee maintained multiple bank accounts & no contemporaneous evidence was produced to establish cash retention. Matrimonial dispute plea was found unsubstantiated. Estimation of household expenses by CIT(A) was reasonable & no infirmity was found. Addition u/s 69A & taxation u/s 115BBE sustained. Appeal dismissed.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal is directed at the instance of assessee against the order of Id. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 18.06.2025 passed for Assessment Year 2017-2018.
