2025 (12) TMI 1518

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....ntre, Delhi (hereinafter referred to as 'the ld. AO') u/s 271D of the Act in pursuance of assessment order dated 26.11.2019 for Assessment Year 2017-18. 2. Brief facts of the case are that the assessment order u/s 143(3) of the Act dated 26.11.2019 was passed by the ld. AO. During the assessment proceedings, the ld. AO found the assessee to have made cash deposits of Rs. 10,58,000/- during demonetization period. As per the assessee, cash deposit of Rs. 9,80,000/- belonged to the amount of sale consideration of immovable property as on 06.11.2016 in old currency. As the assessee accepted cash above Rs. 20,000/- in violation of section 269SS of the Act, the case was referred to Jt. Commissioner of Income-tax for appropriate action. On the ....

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....." 5. The ld. AR for the appellant assessee submitted that the assessee is a senior citizen of 70 years. The assessee had purchased a flat before allotment which was a one room dwelling unit at sector 63, Chandigarh through general power of attorney on 10.05.2010 from Shri Varinder Singh for a consideration of Rs. 6,76,000/-. The flat was sold for Rs. 9,80,000/- the consideration for which was received in cash which was deposited in the bank account. The appellant purchased the flat before allotment and as it was not allowed to transfer the flat before allotment, the sale deed could not be executed, so, the assessee had purchased the flat through general power of attorney. The assessee, under financial need, wanted to sell the flat. Shri....

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....ion of record in the light of the rival contentions, it is crystal clear that the assessee through agreement to sell dated 05.11.2016 received cash payment which was deposited in the bank. The ld. AO in assessment order dated 26.11.2019 did not doubt the source or genuineness of the transaction. The Hon'ble Supreme Court in PCIT vs. Shree Madhi Surali Vibhag Nagarik Sahakari Dhiran Mandali Ltd. (supra), in para No.14 has held as under:- "14. The Tribunal also arrived at a finding of fact that the Assessing Officer also accepted deposits made by the assessee as genuine and the breach of sections 269SS and 269T occurred due to the bona fide belief of the assessee as the Assessing Officer has also not made any addition on account of t....