Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI • Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions • Judicial precedents and Supreme Court, High Court and other citations • Issue-wise legal analysis • Practical arguments and supporting content • Professionally structured draft ready for further review.
Appeal Granted: Addition of Rs.7,01,000 During Demonetisation Period Deleted The Tribunal allowed the appeal, setting aside the CIT(A)'s order confirming the addition of Rs.7,01,000/- deposited during the demonetisation period. The ...
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Provisions expressly mentioned in the judgment/order text.
Appeal Granted: Addition of Rs.7,01,000 During Demonetisation Period Deleted
The Tribunal allowed the appeal, setting aside the CIT(A)'s order confirming the addition of Rs.7,01,000/- deposited during the demonetisation period. The Tribunal found the explanation provided by the retired army officer, citing cash withdrawal for emergency medical treatment, to be reasonable. Considering the individual's age, retired status, and lack of evidence showing expenditure of the earlier withdrawal, the Tribunal ordered the deletion of the addition under Section 69A of the Income Tax Act, 1961. The AO was directed to remove the addition, and the decision was pronounced on 1st June 2022.
Issues: Challenge to addition of cash deposit during demonetisation period.
Analysis: The appeal was filed against the order confirming the addition of Rs.7,01,000/- deposited during the demonetisation period. The assessee, a retired army officer drawing pension, deposited the amount in two bank accounts. The explanation provided was that the cash was withdrawn earlier for emergency medical treatment due to a heart disease. The Assessing Officer (AO) rejected this explanation, citing free treatment facilities for army officers and subsequent deposits and withdrawals. The CIT(A) upheld the addition under Section 69A of the Income Tax Act, 1961.
Upon hearing the parties and examining the bank account details, it was observed that the assessee withdrew Rs.8,00,000/- on a specific date and made subsequent small cash withdrawals. Considering the assessee's age, retired status, and pensioner status, it was plausible that the cash was kept for medical emergencies. Lack of evidence showing expenditure of the earlier withdrawal supported the explanation that the deposit was made from the earlier withdrawn cash. Consequently, the Tribunal found the explanation reasonable and ordered the deletion of the addition of Rs.7,01,000/-.
In conclusion, the Tribunal allowed the appeal, setting aside the CIT(A)'s order and directing the AO to remove the addition. The decision was pronounced in an open court on 1st June 2022.
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