Case Law Details
Jitendra Nemichand Gupta Vs ITO (ITAT Surat)
ITAT Surat held that addition towards cash deposited during demonetization period unwarranted as booking of railway tickets were allowed by way of old currency notes. Here, cash were received from various travelers for booking of railway tickets.
Facts- The case of the assessee was selected for security for the reasons that “large value cash deposit during the year”. During the assessment, AO noted that the assessee has deposited substantial amount of cash of Rs. 1.14 crore in his bank account, out of which amount of Rs. 13,57,110/- during demonetization period. On perusal of reply, AO was of the view that there was no sufficient cash balance on 09/11/2016 to deposit amount of Rs. 13,57,110/- during demonetization period. AO was further of the view that after demonetization, old notes were scrapped except some of the institutions authorised by the government. The assessee is not authorised railway agent. He was not required to accept old notes. The cash deposit of Rs. 13,57,110/- is nothing but unaccounted income of assessee and accordingly made addition thereof.
CIT(A) confirmed the action of AO. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee has furnished the details of his client for which he made booking through IRCTC. No enquiry was conducted against such customers nor the assessee was asked to call any of such customer or cross check of fact on sample basis. The assessee has made transaction of more than Rs. 1.14 crore including Rs. 13,57,110/-. The assessee has also relied on press release of Economic Times wherein booking of railway tickets are also allowed by way of old currency notes. On careful perusal of such press release, I find that in the press release, there is no such restriction that railway tickets is to be booked on railway counters only. Like private hospitals were also allowed to receive old currency notes. The assessing officer has not controverted the contentions and the material brought on record by assessee. Considering the facts that the assessee has discharged his onus by showing prima facia material that the entire cash deposits was part of sale transaction, thus, no addition of cash deposits was warranted.
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