TaxTMI 
TaxTMI 
2025 (8) TMI 664
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.... an assessment order passed by Assessing Officer (in short 'the AO") under section 144 of the Income Tax Act, 1961 . 2. Shri Chetan Agarwal, Learned Counsel for the assessee, begins by pointing out that although, the assessing officer framed the assessment order, under section 144 of the Income Tax Act, despite of the fact that assessee has made compliance during the assessment proceedings and furnished written submission, on 22nd August 2019, before the assessing officer. The Learned Counsel for the assessee, explained the facts, with the help of assessment order, stating that Assessing Officer made addition of Rs. 2,50,000/-, on account of cash deposited to tune of Rs. 2,50,000/-, during demonetisation period. During the course of asse....
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....assessing officer may be sustained. 6. I have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. I find that issue under consideration is squarely covered by the judgement of the Coordinate Bench of ITAT Surat in the case of Jitesh Vithalbhaia Rashiya, in ITA No. 116/SRT/2021, for Assessment Year: (2017-18), wherein the Tribunal held as follows: "8. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. The....
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....e relevant excerpts of Instruction No. 3/2017[F.NO. 225/100/2017/ITA-II] dated 21.02.2017, in Annexure-"Source Specific General Verification Guidelines " states as follows: "1 Cash out of earlier income or savings: In case of an individual (other than minors) not having any business income, no further verification is required to be made if total cash deposit is up to Rs. 2.5 lakh. In case of taxpayers above 70 years of age, the limit is Rs. 5.0 lakh per person. The source of such amount can be either household savings/savings from past income or amounts claimed to have been received from any of the sources mentioned in paras 2 to 6 below. Amounts above this cut-off may require verification to ascertain whether the same is explained....
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....et exemption of Rs. 5,00,000/- in view of instructions of CBDT, as the wife of the assessee did not have any other operational bank account and hence she has deposited her household savings in the same bank account of Axis bank where she is also a nominee (Name:Janvi is mentioned in pass book at Pg 37 of the paper Book). The CBDT Instructions also clearly states that only the amount above the cut-off may require verification. Therefore, assessee is entitled to claim a blanket exemption of Rs. 5,00,000/- (Rs. 2,50,000/- assessee himself and Rs. 2,50,000/- for wife) in view of instructions of CBDT. 13. So far the balance amount is concerned, it is Rs. 5,20,000/- (10,20,000- Rs. 5,00,000/-). Against the additional amount deposited of ....
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....low Statement to reflect the cash available in the books. Based on these evidences, it is proved that the assessee was having sufficient cash on hand at the time of deposit of the cash in the bank. In response to the various notices filed by the assessee in the explanations, the assessing officer was not able to rebut the explanation offered by the assessee. He just observed that the cash withdrawn by the assessee in the various years were towards the household expenses. In this connection, it is submitted that the assessee has already shown the household expenses in the capital account filed by him in the course of the assessment proceedings. The assessing officer was not able to bring on record any evidence that the cash withdrawn from th....
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....ld lead to recurring attempts on the part of the Revenue Authorities to reject genuine explanations offered by the Assessee with respect to sums credited/offered as income in its books as unsatisfactory solely to extort higher rates of taxes thereon u/s 115BBE of the Act. The A.O in exercising his powers u/s 68 of the Act is not vested with unfettered powers to reject any explanation as being not to his satisfaction merely on the basis of surmises and conjecture. The AO is bound under law to act reasonable and just while framing any satisfactory opinion surrounding the explanation offered by the taxpayer. From the facts of the case at hand, it is clear that the A.O has acted unreasonably and capriciously in rejecting the genuine explanation....