Demonetization

Implications of deposit of Specified Bank Notes vis-à-vis Section 69A

Income Tax - Legal implications of deposit of Specified Bank Notes (SBNs) vis-à-vis Section 69A of the Income-tax Act, 1961 It has been considerable time since the demonetization of the earlier bank notes of denomination Rs.1,000/- and Rs.5,000/-, also referred to as the Specified Bank Notes (SBNs) was implemented by the Central Government by notific...

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Remembering Demonetisation on its Fourth Birth Anniversary!!!

Income Tax - The primary reason for bringing out the Direct Tax Vivad Se Vishwaas Scheme 2020, as asserted by the learned Revenue Secretary is to ensure amicable resolution of disputes arising out of OCM/Demonetisation Cases. The Income-tax department has launched an aggressive outreach drive, wherein, a large number of jewellers and real-estate de...

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Beware‼ Penalty on cash receipt of Rs. 2 Lakhs or more

Income Tax - Krishna, from 1st April 2017, for accepting cash people have become very much conservative. Please tell me what precautions anyone should take while accepting cash?...

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Tax @ 82.50% even if you received amount via proper banking channels

Income Tax - Yes, in certain case even if assessee received money through proper banking channels still it may attract tax @ 82.50% if assessee could not explain its source, identity and creditworthiness etc of the lender/giver of the amount to the satisfaction of Assessing Officer...

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Treatment of Cash Sales as Unexplained Cash Credit | Section 68

Income Tax - Is addition u/s 68 of the Income Tax Act justified in case of Cash Sale duly credited in P & L Account and offered for taxation? During the Demonetization period (i.e. 09/11/2016 to 31/12/2016), there has been a huge deposition of cash in old demonetized currency (or SBN) notes in various Bank Account. It was […]...

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No proposal to stop circulation of Rs 2,000 notes

Income Tax - An analysis of the search cases, conducted by Income Tax Department (ITD), involving cash seizures of more than Rs 5 crores in the last three Financial Years reveals that there is a declining trend visible in the seizure of unaccounted cash in denomination of Rs 2,000 notes....

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1.06 Crore people filed ITR for 1st time mainly due to demonetization

Income Tax - Anti-black money measures brought undisclosed income of about Rs 1.3 Lakh Crore to tax  Rs 6,900 Crore worth Benami assets and Rs 1600 Crore worth foreign assets attached 18% growth in direct tax collection in Fy 2017-18 Tax base increased by 1.06 Crore people filing ITR for 1st time mainly on account of demonetization  The […]...

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ICAI withdraws Guide on disclosure of Specified Bank Notes

Income Tax - The Ministry of Corporate Affairs vide notification dated March 30, 2017 notified Companies (Audit and Auditors) Amendment Rules, 2017 and Amendment to Schedule III to the Companies Act, 2013. Vide this amendment, the following new clause was inserted in Rule 11 of Companies (Audit and Auditors) Rules, 2014...

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FM defends Demonitisation & explains its Impact

Income Tax - Demonitisation compelled holders of cash to deposit the same in the banks. The enormity of cash deposited and identified with the owner resulted in suspected 17.42 lakh account holders from whom the response has been received online through non-invasive method. ...

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Action on those Converting Black Money into White during Demonetization

Income Tax - Appropriate action by the Income-tax Department (ITD) and other Law Enforcement Agencies has been taken against those involved in the misuse of the Scheme of Demonetization. Such actions by the Income-tax Department included among others, conducting search and survey actions in relevant cases. During the period November 2016 to March, 201...

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No section 69 addition for cash received for House Rent & Agricultural Land deposited during Demonetization

Sri Narsimha Reddy Pindi Vs ITO (ITAT Hyderabad) - Sri Narsimha Reddy Pindi Vs ITO (ITAT Hyderabad) There is no dispute to the fact that the assessee is deriving rental income from two house properties situated at H.No.8-3-35/1 Bairamalguda Sagar Road, Pindipullareddy Colony, Hyderabad and H.No.7-1-173 Bairamalguda (V) Bairamalguda Sagar Road LB Nag...

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No addition for Cash Deposit during Demonetization out of Cash generated from Rent

Shri Krishnapandian Balaji Vs DCIT (ITAT Chennai) - Shri Krishnapandian Balaji Vs DCIT (ITAT Chennai) When a specific query was raised by the Bench, as regards to noting made by AO as well as CIT(A) that the closing cash as on 31.03.2006 is ‘nil’ as per ITR, the ld.counsel explained that in ITR the assessee is declaring business cash in hand and ...

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ITAT deletes addition for cash deposited during demonetization based on past trend of Cash Sales & Deposit

Lateef Abdul Mohd. Vs ITO (ITAT Hyderabad) - Lateef Abdul Mohd. Vs ITO (ITAT Hyderabad) Assessing Officer in the instant case made an addition of Rs.30.00 lakhs being the cash deposits made by the assessee in old denomination of Rs.1000 currency notes during the demonetization period in his bank a/c maintained with Indian Overseas Bank. Simila...

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Section 263: PCIT cannot comment on issues not forming part of limited scrutiny

Baljeet Yadav Vs PCIT (ITAT Jaipur) - Baljeet Yadav Vs PCIT (ITAT Jaipur) It is evident from the assessment order and impugned order that the assessee’s case was selected for scrutiny under CASS for examination of cash deposits made in the bank during the demonetarization period. It is prima facie not clear whether it was a limited sc...

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ITAT deletes Section 68 addition for SBNs collected prior to Demonetization

Prathamika Krushi Pattina Vs ITO (ITAT Bangalore) - Prathamika Krushi Pattina Vs ITO (ITAT Bangalore) In the instant case, there is no dispute with regard to the fact that sources for making deposit of Rs.36.36 lakhs by the assessee whoo is a primary agricultural credit co-operative society into its bank account are the money collected from its membe...

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Bank to preserve CCTV recording of Demonetization period: RBI

No. RBI/2021-22/51 DCM(Plg). No. 51961/10.27.00/2021-22 - (08/06/2021) - Keeping in view the investigations pending with law enforcement agencies, proceedings pending at various courts, you are advised to preserve the CCTV recordings of operations at bank branches and currency chests for the period from November 08, 2016 to December 30, 2016 in a proper way, till further...

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Verification check list for assistance of AOs for OCM Cases

Instruction No. 15 - (15/11/2019) - In this regard, board has issued an instruction related to the verification checklist in the cash deposit cases during the demonetization period for providing the assistance to the AOs for verification of cash deposits and framing of assessment in the demonetisation related cases....

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Check list for Cash deposited during demonetisation

F.No.225/145/2019-ITA-II - (09/08/2019) - Board has earlier issued above referred SOPs/Instruction/Internal Guidance Note regarding handling of cases related to demonetisation. In continuation of the same, a Verification Checklist-cash deposits is enclosed herewith for providing assistance to AOs for verification of cash deposits and framin...

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Cases of substantial cash deposit during demonetisation period- Reg.

F. No. DGIT(S)-ADG(5)-2/Insight Instructions/292/2018-19 - (15/03/2019) - Functionality for viewing information related to Cases of substantial cash deposit during the demonetisation period in which notice under section 142(1) of the I. T. Act has remained non-complied...

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Complete Assessment of case of substantial cash deposit during demonetisation by 30.06.2019

No. 225/363/2017-ITA.II - (05/03/2019) - SOP for handling of cases related to substantial cash deposit during the demonetisation period in which notice under section 142(1) of the Income-tax Act, 1961 has not been complied-regd.-...

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Recent Posts in "Demonetization"

No section 69 addition for cash received for House Rent & Agricultural Land deposited during Demonetization

Sri Narsimha Reddy Pindi Vs ITO (ITAT Hyderabad)

Sri Narsimha Reddy Pindi Vs ITO (ITAT Hyderabad) There is no dispute to the fact that the assessee is deriving rental income from two house properties situated at H.No.8-3-35/1 Bairamalguda Sagar Road, Pindipullareddy Colony, Hyderabad and H.No.7-1-173 Bairamalguda (V) Bairamalguda Sagar Road LB Nagar Hyderabad amounting to Rs.6,72,000 pe...

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No addition for Cash Deposit during Demonetization out of Cash generated from Rent

Shri Krishnapandian Balaji Vs DCIT (ITAT Chennai)

Shri Krishnapandian Balaji Vs DCIT (ITAT Chennai) When a specific query was raised by the Bench, as regards to noting made by AO as well as CIT(A) that the closing cash as on 31.03.2006 is ‘nil’ as per ITR, the ld.counsel explained that in ITR the assessee is declaring business cash in hand and not […]...

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ITAT deletes addition for cash deposited during demonetization based on past trend of Cash Sales & Deposit

Lateef Abdul Mohd. Vs ITO (ITAT Hyderabad)

Lateef Abdul Mohd. Vs ITO (ITAT Hyderabad) Assessing Officer in the instant case made an addition of Rs.30.00 lakhs being the cash deposits made by the assessee in old denomination of Rs.1000 currency notes during the demonetization period in his bank a/c maintained with Indian Overseas Bank. Similarly, the Assessing Officer made addition...

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Section 263: PCIT cannot comment on issues not forming part of limited scrutiny

Baljeet Yadav Vs PCIT (ITAT Jaipur)

Baljeet Yadav Vs PCIT (ITAT Jaipur) It is evident from the assessment order and impugned order that the assessee’s case was selected for scrutiny under CASS for examination of cash deposits made in the bank during the demonetarization period. It is prima facie not clear whether it was a limited scrutiny case or a detailed […]...

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ITAT deletes Section 68 addition for SBNs collected prior to Demonetization

Prathamika Krushi Pattina Vs ITO (ITAT Bangalore)

Prathamika Krushi Pattina Vs ITO (ITAT Bangalore) In the instant case, there is no dispute with regard to the fact that sources for making deposit of Rs.36.36 lakhs by the assessee whoo is a primary agricultural credit co-operative society into its bank account are the money collected from its members. The AO is also not […]...

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ITAT deletes addition for cash deposit during demonetisation out of Cash withdrawal

Col. Ranjan Sharma Vs ITO (ITAT Bangalore)

Col. Ranjan Sharma Vs ITO (ITAT Bangalore) Assessee has withdrawn a sum of Rs.8,00,000/- from his bank account maintained with ICICI Bank on 05.06.2015. I notice that the assessee has withdrawn cash in small amounts in subsequent period also. Since the assessee is an aged person and retired from army, it is quite possible that […]...

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Cash Deposit from unknown sources during Demonetization – ITAT upheld Addition

Sneha Nerli Vs ITO (ITAT Bangalore)

Sneha Nerli Vs ITO (ITAT Bangalore) We are of the opinion that assessee has to prove with evidences that sufficient cash was available to deposit to her bank account. In the present case, assessee claimed that she has been working in Dubai and that the cash deposit in India were on account of amounts earned […]...

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No addition for cash deposited post demonetization out of Sale proceeds

Anantpur Kalpana Vs ITO (ITAT Bangalore)

Anantpur Kalpana Vs ITO (ITAT Bangalore) In this case Both the AO and CIT(A) accepted the fact that the cash receipts are nothing but sale proceeds in the business of the assessee. The addition has been made only on the basis that after demonetization, the demonetized notes could not have been accepted as valid tender. […]...

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No addition for cash deposited below Rs. 2.5 Lakh during demonetization period

Aniket Agarwal Vs ITO (ITAT Delhi)

Whether any addition can be made and confirmed in the hands of assessee on account of cash deposit of Rs.2,30,000- during demonetization...

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No addition for cash deposited during demonetization out of earlier cash withdrawals

Om Parkash Nahar Vs. ITO ( ITAT-Delhi)

Om Parkash Nahar Vs. ITO ( ITAT-Delhi) The amount deposited during demonetization period was relate to out of withdrawals from the same account from 2014,2015 & 2016 is not treated as income from undisclosed source The assessee’s explanation is that looking to his old age and suffering from various ailments as he had suffered a [&he...

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