Gouthamchand Jain Vs ITO (ITAT Chennai)
In the case of Gouthamchand Jain Vs ITO (ITAT Chennai), the Income Tax Appellate Tribunal addressed the addition of Rs. 28.57 lakhs to the assessee’s income for AY 2017-18, related to cash deposits made during the demonetization period. The assessee, who had been a consistent taxpayer for 29 years, claimed that these deposits were from previously accumulated cash and legitimate income from prior years. Despite this, the Assessing Officer (AO) disbelieved the explanation, citing an unexplained increase in cash-in-hand and insufficient verification of debtors. The Commissioner of Income Tax (Appeals) upheld the AO’s decision, leading to the current appeal. The ITAT Chennai reviewed the case, finding that the assessee had provided ample documentary evidence, including financial statements and prior income declarations, supporting the availability of the deposited cash.
ITAT observed that For the financial year 2014-15, the assessee has shown closing cash-in-hand of Rs.9.68 Lacs and Sundry Debtors of Rs.16.70 Lacs. The assessee has reflected interest income of Rs.4.11 Lacs in this year. The return of income for this year has been filed on 08-08-2015 which is well before the announcement of demonetization on 08-11-2016. Therefore, the same could not be held to be mere after-thought on the part of the assessee.
