2025 (7) TMI 98

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....r limited scrutiny through CASS for the reason large value of cash deposited during demonetization period. Accordingly, notices under section 143(2) and 142(1) of the Income-tax Act, 1961 (for short 'the Act') were issued and served on the assessee. During assessment proceedings, the AO observed that as per the information available, the assessee has made total cash deposit of Rs. 23,22,500/- during demonetization period from 08.11.2016 to 31.12.2016 in his various bank accounts maintained by him. A showcause notice was issued to the assessee to justify the cash deposit made during the demonetization period. In response, assessee has submitted the details of cash deposit made by him and it was submitted that assessee has withdrawn cash duri....

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....,000/- respectively and gave a partial relief by observing as under :- "6.1 During the course of appellate proceedings, the submission of the appellant and the assessment order dated 18.12.2019 have been perused and found that the appellant had received salaries in his bank account followed by cash withdrawals and it is a pattern of such withdrawals which has been observed from the Bank statements therefore the contention of the appellant prima facie appears to be valid but the appellant has submitted cash flow statement of some quite old years as well and hence all the cash flow statements cannot be accepted in toto. Further, the A.O. had not established any other occupation from where appellant had earned income during the year u....

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.... of the appellant regarding the validity of the deposits was prima facie accepted based on the bank statements reviewed. 4. That the learned CIT(A) did not accept all cash flow statements in their entirety, particularly those from older years indicating a selective validation of the appellant's claims. 5. That the learned CIT(A) one side allowed the deposits out of cash withdrawals made during the assessment years 2015-16, 2016-11, and 2017-18 (up to 07.11.2016) whereas 011 the other hand the deposit made of withdrawals of previous. ears such as assessment year 2010-11 to 2014-15 has not considered. 6. That the learned CIT(A) failed to appreciate the evidence and submissions provided by the assessee in their p....

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.... CIT(A). 7. Considered the rival submissions and material on record. I observed that assessee is a salaried employee earns the income from teaching services. As per the facts available on record, assessee habitually withdraws all the cash out of salary credited in his bank account. He maintained withdrawals with himself due to his religious belief. I observed that ld. CIT(A) has considered the facts available on record and he has given relief only to the extent of cash withdrawals of last three assessment years. I also observed that there is no other source of income unearthed by the tax authorities. Therefore, whatever the cash withdrawals by the assessee is only out of salary income and it is also observed that assessee has only withdr....