Demonetisation cash deposits explained from disclosed sources; ITAT Delhi deleted the addition after accepting the assessee's evidence.

Cash deposits made during the demonetisation period were treated as explainable from disclosed sources where the assessee showed that the funds had been accumulated with aged parents from remittances and withdrawals received from abroad over time, and the Revenue failed to establish any other source of income for the assessee or the parents. On the totality of circumstances, the ITAT Delhi extended the benefit of presumption to the assessee and held that the impugned amount was supported by disclosed sources. The addition was directed to be deleted.

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Issues: Whether the cash deposit made during the demonetisation period was explainable from disclosed sources so as to warrant deletion of the addition.

Analysis: The Tribunal accepted the assessee's explanation that the cash represented money kept with aged parents out of remittances and withdrawals made from abroad over a period of time, and noted that the Revenue had not shown any other source of income for the assessee or the parents. In view of the totality of circumstances, the Tribunal extended the benefit of presumption to the assessee and held that the impugned amount was supported by disclosed sources.

Conclusion: The addition was directed to be deleted, and the assessee succeeded on the substantive issue.

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