9911796707
TMI Blog2022 (3) TMI 1500X X X X Extracts X X X X X X X X Extracts X X X X ..... AA) against order dated 26-12-2019 u/s 144 of the Act passed by Income-tax Officer, Ward 1 (2)(5), Dehradun (hereinafter referred to as "the Ld. AO). 2. The facts in brief are that the assessee is a salaried employee and also engaged in farming. A notice dated 30-1-2018 was issued u/s 142(1) of the Act for filing the return of income for the assessment year 2017-18. The ld. AO observed that Rs. 1,64,552/- was taxable on account of salary, Rs. 55,433/- were added to the income of assessee under capital gain, Rs. 5,990/- under income from other sources, Rs. 3,50,000/- as agricultural income, Rs. 13,380/- as dividend income and Long Term Capital Gain for equity shares. Apart from that Ld. AO noticed that during demonetization period a sum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.1000 X 700) is that the entire cash withdrawal on 23-9-2016 was in the denomination of Rs. 500 notes. As per the assesse, the Assessing Officer has accepted the source of cash deposit of Rs. 15,00,000/- in principal and made addition as the denomination of the notes withdrawn and notes deposited were not matching. There is some force in the argument of the assesse that he had other sources of income and cash was available with him which was deposited before and after the date of deposit on 18-11-2016. In view of the above, there is every chance of mixing of notes, human nature of keeping/saving higher denomination notes for ease of storing and carrying also cannot be denied. Further, the assesse may also be having cash availability on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ords. (4) That the observation of learned CIT (Appeals) in the order are per verse, arbitrary, baseless and misleading and part addition in upheld based on purely Conjecture and surmises as evident from closing para of order:- "Looking into the overall facts of the case, it will be reasonable to give allowance of Rs. 3,50,000/- for past savings and mixing of denomination of notes. This will result in relief of Rs. 3,50,000/- and the addition will be restricted to Rs. 3,50,000/- . Hence the addition needs to be deleted. The appellant craves leave to reserve its right to add to, delete from, amend, alter or modify its Grounds of Appeal before or at the time of hearing." 6. Heard the Ld. AR and Ld. DR. It was contended by the ld. AR tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation was declared by the Central Government and factually Rs. 15,00,000/- were deposited by the assessee on 18-11-2016. 8.1 What can be held is that the amount of Rs. 15,00,000/- was not lying with the assessee for the unreasonable period after withdrawal and also there was a reason out of legal compulsion to deposit the demonetizes currency notes in the bank. Had there been no such legal requirement, assessee may not have deposited the amount back and may have used it for the purpose for which it was allowed to be withdrawn by its bankers in KCC Limit account. Since before demonetization, there was no reason to deposit back the currency notes so there could have been no prudent reasoning for the assessee to have kept the same currency no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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