Pankaj Kumar Vs ITO (ITAT Agra)
The Income Tax Appellate Tribunal, Agra Bench, partly allowed the assessee’s appeal for assessment year 2017-18 against the order passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre under Section 144 of the Income-tax Act, 1961. The dispute related to additions made by the lower authorities treating cash deposits during the demonetization period from 9 November to 30 December 2016 amounting to Rs.15.44 lakh and interest credits of Rs.2,51,150 as unexplained under Section 69A and taxing the same under Section 115BBE.
The assessee contended that the cash deposits and credit entries were sourced from earlier cash withdrawals of Rs.8 lakh and Rs.10.50 lakh made on 15 and 16 March 2016. The Tribunal observed that the Revenue could not dispute these withdrawal entries. However, the Tribunal also noted that the assessee had failed to furnish a cash-flow statement or substantive evidence directly reconciling the withdrawals with the subsequent cash deposits and credit entries.
At the same time, the Tribunal found that the lower authorities had also failed to grant credit for the cash withdrawals shown by the assessee. Considering the overall facts and circumstances, the Tribunal held that a lump sum addition of Rs.1 lakh alone would meet the ends of justice and clarified that the order should not be treated as a precedent. As a result, the assessee received relief of Rs.16,95,150.
