9911796707
TMI Blog2022 (4) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... g regarding availability of cash in the specified bank notes, which were banned by the order of the Government. It was stated before the authorities below that the demonetization of currency was declared by the Reserve Bank of India on 8.11.2016. After demonetization there was huge crowed to deposit old currency and withdrew new currency by public. As per the assessee it was not safe in view of the banks being over crowded during that period. This plea of the assessee was rejected stating that on earlier occasion the assessee had withdrawn bigger amount of money from the bank account. We find merit into the contention of the assessee that there were big lines and the banks were over crowded. Therefore, it was open to the assessee for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeal. 2. The only effective ground is against the sustaining of addition of ₹ 4,00,000/- made u/s. 69A of the Income-tax Act, 1961, hereinafter referred to as the Act . 3. Facts, kin brief, are that the assessee e-filed his return of income declaring income of ₹ 7,86,040/- on 28.10.2017. The case of the assessee was selected for limited scrutiny under CASS to examine the issue of cash deposit during the year. The Assessing officer, during the course of assessment, issued a notice dated 26.11.2019 u/s. 142(1) of the Act to explain the cash deposit during the demonetization period in old currency notes and state the closing balance of cash in hand as on 08.11.2016. In response thereto, the assessee has stated that du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised by the Assessing Authority. It was further contended that the assessee accepted the source of deposit of ₹ 5,00,000/- on 16.11.2016 but treated ₹ 4,00,000/- deposited on 22.11.2016 as unexplained. The basis of the addition is that it is against the normal understanding that the assessee should have deposited the amount in one day. I find that the Assessing officer has not given any finding regarding the availability of cash with the assessee prior to the demonetization. If an assessee has cash available prior to demonetization and if he opted to deposit the same multiple times, there is no prohibition in law for such deposits. The fundamental question would be whether the assessee was having the explained cash which was de ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
