2022 (5) TMI 831

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....s case the sole issue for my consideration is that as to whether any addition can be made and confirmed in the hands of the assessee on account of cash deposit of Rs.2,30,000/- during demonetization period. 3. The ld. assessee's representative (AR for short) made written submissions, which read as follows:- "Brief facts of the case : 1. The Appellant is a qualified professional (ICWA). The main source of income of the appellant is a salary income and the appellant is regularly filing ITR. For the concerned assessment year, the appellant had filed the ITR declaring a gross total income of Rs. 5,13,458/-. In the year under consideration the appellant has also deposited a cash in his bank account amounting to Rs.2,30,000/-....

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.... or amounts claimed to have been received from any of the sources mentioned in Paras 2 to 6 below. Amounts above this cutoff may require verification to ascertain whether the same is explained or not. The basis for verification can be income earned during past years and its source, filing of ROI and income shown therein, cash withdrawals made from accounts etc. " It is a trite law that the CBDT Instruction are binding on the income tax authorities. Therefore, the cash deposited by appellant in his bank account of Rs. 2,30,000/- from his past savings and out of the cash gifts received on the occasion of birthdays/ festivals from his friends/ relatives should not have been brought to tax as per the CBDT Instruction. 3. The H....

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....er and confirmed by the ld. CIT (Appeals) cannot be held as sustainable and valid in law. 5. Replying to the above the ld. Sr. DR strongly supported the assessment as well as the first appellate order. However, he could not controvert that the assessee is an Individual earning income from salary and regularly filing return of income and paying due tax thereon. The ld. DR also could not controvert that the total deposits made by the assessee to his bank account was Rs.2,30,000/- and as per CBDT Instruction No. 1.1 (supra) no further verification is required in a case where an Individual earning income from salary has deposited an amount up to Rs.2,50,000/- during demonetization period. I also inclined to hold that the order of ITAT, Agra ....