2025 (6) TMI 55

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of the Income-tax Act, 1961 (for short 'the Act'). The case was selected for Limited Scrutiny mentioning: "Large Cash deposits in bank account(s) during the year". While passing the assessment order, the Assessing Officer has made the addition of Rs. 2,68,000/- and stated in assessment order that the assessee declared Rs. 25,88,730/- as opening cash in hand as on 09.11.2016 and Rs. 24,000/- was withdrawn from the bank account during demonetization period. Assessing Officer further observed that it was not understood how assessee deposited cash of Rs. 28,80,730/- whereas he own only Rs. 26,12,730/- (Rs. 25,88,730/- + Rs. 24,000/-) during the same period. Hence, Assessing Officer held that differential amount of Rs. 2,68,000/- [Rs. 28,80,730/....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Act dated 13.10.2023. 2. That the Ld. Commissioner of Income Tax (Appeals) has erred in additions of Rs. 2,68,000j- for difference in opening cash balance held as on dated 09.11.2016. But in reality the assessee has cash balance of Rs. 2,92,000/- which was the cash out of earlier income or savings and gift and the same was duly reported by the assessee in Cash Transaction Declaration, 2016. Further the Ld. Assessing Officer has erred in arbitrarily considering Rs. 24,000/- withdrawn during demonetization as a source of cash deposit. Hence, addition of Rs. 2,68,000/- to the income of the assessee is arbitrary and is liable to be deleted. 3. That the Ld. Commissioner of Income Tax (Appeals) failed to appreciate the facts by....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... erred both in law and on facts in initiating penalty proceedings u/s 271AAC(1)." 6. At the time of hearing, ld. AR of the assessee brought to our notice above facts on record and submitted that assessee has deposited the cash out of cash withdrawals of Rs. 24,40,000/- made by the assessee and he brought to our notice a chart given in the written submissions wherein assessee has withdrawn cash to the extent of Rs. 24,40,000/-. For the sake of clarity, the chart given is reproduced below :- S. No. Date of Withdrawal Amount Withdrawn (INR) BANK 1 31.05.2016 2,00,000/-   2 06.06.2016 2,40,000/-   3 11.07.2016 2,00,000/-   4 02.08.2016 4,70,000/-     S....