Mahendrakumar Prahladbhai Vaghela Vs ITO (ITAT Ahmedabad)
In the matter abovementioned ITAT deleted addition made u/s 69A as undisclosed income in form of cash deposited during demonetization by observing that assessee has supplied plausible explanation in respect of cash deposit and department remained failed in conducting individual enquiry from the lenders.
IT Department during demonetization (from November 9, 2016, to December 30,2016) identified various individuals who had deposited substantial sums of cash, under the initiative “Operation Clean Money”. These individuals did not file their ITRs for AY 2017-18. In case of assessee, AO observed that out of total deposit in bank accounts of the assessee amounting to Rs. 18,74,511/-, a total of Rs. 15,15,000 was deposited in cash using old notes of Rs. 500 and Rs. 1000. AO added whole amount of Rs. 18,74,511 as undisclosed income u/s 69A.
On appeal before CIT (A) it was submitted that amount was deposited during demonetization period to repay home loan and cash was held by the relatives of the assessee in support of the same declarations were filed from respective relatives. CIT(A) held that the declarations were self-serving documents. CIT(A) took view that if any of the withdrawn money had remained unused, it should have been deposited into the bank accounts of the respective relatives, from where it could have been transferred to the assessee’s bank accounts. CIT (A) dismissed the appeal.
