Mohd Imran Vs Assessing Officer (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT), Delhi bench, has delivered a ruling in the case of Mohd Imran vs. Assessing Officer, allowing the assessee’s appeal and deleting an addition of Rs. 14,36,117 made by the tax authorities on account of unexplained cash deposits during the demonetization period. The Tribunal’s decision, pronounced on April 30, 2025, provides relief to a salaried individual who had deposited accumulated cash, claiming it originated from regular salary withdrawals held due to religious beliefs.
Background of the Case
The case pertains to Assessment Year 2017-18. Mohd Imran, the assessee, a salaried individual earning income from teaching services, had filed his return of income declaring Rs. 7,59,860/-. His case was subsequently selected for limited scrutiny through the Computer Assisted Scrutiny Selection (CASS) system due to a large value of cash deposits made during the demonetization period, specifically between November 8, 2016, and December 31, 2016.
During the assessment proceedings, the Assessing Officer (AO) noted that the assessee had deposited a total of Rs. 23,22,500/- across various bank accounts during this period. A show-cause notice was issued to the assessee, seeking justification for these cash deposits. In response, Mr. Imran submitted details of his cash withdrawals over three financial years: 2014-15, 2015-16, and 2016-17, asserting that the deposits stemmed from these accumulated withdrawals.
