Tribunal Overturns CIT(A) Order, Deletes Rs. 17.48 Lakh Addition; Marriage Gifts Found Legitimate During Demonetization.

The Tribunal ruled in favor of the appellant, setting aside the Ld. CIT(A)'s order and directing the AO to delete the addition of Rs. 17,48,000 as unexplained cash deposits during the demonetization period. The Tribunal found the sources of cash deposits to be genuine, considering the appellant's explanation of receiving marriage gifts supported by gift deeds and verified financial capabilities of the donors. The appeal was allowed, and the decision was pronounced on 5th January 2024.

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Issues: Appeal against addition of cash deposits during demonetization period under section 69A of the Income Tax Act for Assessment Year 2017-18.

Summary:
The appellant contested the addition of Rs. 17,48,000 as cash deposits during the demonetization period, challenging the Ld. CIT(A)'s confirmation of the same. The AO found the appellant deposited the amount in a bank account during the specified period and issued a show cause notice for unexplained cash credit. The Ld. CIT(A) upheld the AO's decision.

Upon review, it was noted that the appellant, situated in a remote area, received marriage gifts totaling Rs. 15,00,000 from family members, supported by gift deeds, ITRs, and balance sheets. The donors' financial capabilities were verified through their tax assessments. The appellant also disclosed an opening cash balance and transactions during the relevant period. The Tribunal found the sources of cash deposits were genuine, considering the marriage context and family financial standings. Despite the absence of evidence from the deceased grandparent, the Tribunal concluded in favor of the appellant.

The Tribunal set aside the Ld. CIT(A)'s order and directed the AO to delete the addition, ruling in favor of the appellant. The appeal was allowed, and the decision was pronounced on 5th January 2024.

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