Narinder Kumar Vs ITO (ITAT Amritsar)
The appeal before the Income Tax Appellate Tribunal, Amritsar, arose from an order passed by the Commissioner of Income Tax (Appeals), NFAC Delhi, which had upheld an assessment made under section 144 of the Income Tax Act relating to unexplained cash deposits during the demonetization period.
At the outset, the Tribunal considered a delay of 183 days in filing the appeal. The assessee submitted an affidavit explaining that he had been residing in the USA when the appellate order was passed on 28.03.2024 and returned to India on 08.05.2024. It was further stated that he subsequently tested Covid-positive and, being a senior citizen, was advised bed rest. Copies of the passport and medical records from Gulati Hi-Tech Path Lab, Hoshiarpur were furnished in support of the explanation. After considering the affidavit and medical documents, the Tribunal condoned the delay and admitted the appeal for hearing on merits.
The assessee, aged about 70 years, stated that he and his wife, both senior citizens, were residing alone and had no active income-earning activity. During the demonetization period, cash deposits totaling Rs.11.99 lakh were made into two bank accounts maintained with ICICI Bank and HDFC Bank, Hoshiarpur. Since the assessee failed to provide satisfactory explanations regarding the source of the deposits, the Assessing Officer allowed credit of Rs.2,48,500 as available cash in hand and treated the remaining Rs.9,50,500 as unexplained cash deposits under section 69A.
