TaxTMI 
TaxTMI 
2022 (9) TMI 590
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....plea one or other whereas the fact is that above cash deposits was out of cash in hand with the members of HUF and due to demonetization Rs. 500 and Rs.1000 notes, the same was deposited in the bank account and nothing was from undisclosed sources and the same was properly disclosed in the income tax return for the AY 2017-18and as such confirming the addition made by Ld. AO is bad in law, and against the principle of natural justice and the same deserves to be quashed. Full relief is sought for. 2. Because the deposit of Rs. 1,00,000 was made on 21.11.2016 through old currency (Rs. 500 and Rs.1000 denomination notes) hence in view of the circular of the RBI/IT Department, the same cannot be treated as unexplained income u/s 69A as the ....
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....t the assessee declared the said deposit in the return of income and it was due to the fact that these currency notes of Rs. 500- 1000/- were declared as not a legal tender after demonetization and accordingly, the same were required to be deposited in the bank account before the date prescribed. Hence, the assessee contended before the CIT(A) that the assessment of the said income of the assessee under the provisions of section 115BBE is unjustified and arbitrary. The CIT(A) was not impressed with the explanation of the assessee and confirmed the addition made by the Assessing Officer. 3. Before the Tribunal, the learned AR of the assessee has submitted that during the demonetization period, the assessee has deposited the cash of Rs. 1,00....
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.... the proof of past income and savings. Therefore, in the absence of any documentary evidence of past savings and source of the cash of Rs. 1,00,000/- this explanation of the assessee cannot be accepted. The assessee has not explained the source of the deposit either before the Assessing Officer or before the CIT(A). He has relied upon the orders of the authorities below. 5. I have considered the rival submissions as well as relevant material on record. The case of the assessee was taken up for scrutiny to examine the cash deposit of Rs. 18,00,000/- during the demonetization period. The Assessing Officer issued a notice under section 143(2) and in response to the said notice, the assessee submitted that the cash deposit in the Canara Bank o....
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....he last notice issued by the Assessing Officer under section 142(1) on the email was not responded by the assessee and the learned AR of the assessee has explained the reason that the assessee could not notice the said show cause notice as it was the first year of faceless assessment and notice was sent electronically by the Assessing Officer. Once, the assessee has explained before the CIT(A) that the cash was deposited in the bank account after the demonetization as it was required to deposit in the bank otherwise the value of the currency would be zero and keeping the same with the assessee would be illegal. The assessee has declared this deposit in the return of income and therefore, the explanation of the source as past saving of the a....