Aayodhya Jajra Vs CIT (Appeals) (ITAT Jodhpur)
In the case of Aayodhya Jajra vs. CIT (Appeals) before the Income Tax Appellate Tribunal (ITAT) in Jodhpur, the tribunal ruled in favor of the 77-year-old assessee, deleting the addition of cash deposit against the opening balance during the demonetization period. Here’s a detailed summary of the case:
The assessee filed her return of income for the assessment year 2017-18, declaring a total income of Rs. 4,10,500/-. The case was selected for scrutiny under the Computer Assisted Scrutiny System (CASS) under section 143(3) of the Income Tax Act. The scrutiny primarily focused on the cash deposits made during the demonetization period.
The Assessing Officer (AO) found the explanations provided by the assessee unsatisfactory and contradictory. Despite the submission of justifications supported by the cashbook, the AO was not convinced. The AO raised concerns about the source of income, especially since several family members had also deposited significant cash amounts during demonetization.
The assessee, however, argued that she had been regularly filing tax returns since 1998, consistently declaring income from tailoring. The nature of income and the source were already on record with the tax authorities. The cash deposits during demonetization were explained as part of the accumulated savings over the years. The opening balance, supported by cashbook entries, reflected income from previous years and should not be treated as part of the current year’s income.
