Ashish Anand Vs ITO (ITAT Delhi)
ITAT Delhi: Employer’s Cash Deposits in Employee’s Account—Addition Remanded, 60% Tax u/s 115BBE Not Applicable for AY 2017-18
Delhi Tribunal dealt with the issue of unexplained cash deposits during the demonetization period. AO made an addition of ₹26,18,000/- u/s 69A r.w.s. 115BBE on the ground that substantial cash was deposited in Assessee’s bank accounts . Assessee contended that he was an employee of Shri Jitendra Pal, proprietor of J.P. Mobiles, & that the cash was deposited by his employer in Assessee’s accounts during demonetization. It was further explained that the entire cash so deposited was transferred back to the employer through banking channels. To substantiate this, Assessee produced bank statements of both his accounts & those of the employer, showing contemporaneous transfers of identical amounts.
AO as well as the CIT(A) disregarded the explanation & upheld the addition. On further appeal, Tribunal found merit in assessee’s contention. It observed that the explanation was plausible & supported by bank records. Accordingly, the matter was restored to AO for the limited purpose of verifying the quantum of cash deposits actually transferred from assessee’s bank accounts to the employer. To the extent such transfers are established, no addition u/s 69A shall survive.
