2025 (2) TMI 1644

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....Order No.ITBA/NFAC/S/250/2024-25/1065486000(1) dated 07.06.2024 for the A.Y.2017-18 arising out of the order passed under section 143(3) of the Income Tax Act, 1961 (in short 'Act') dated 16.12.2019. 2. Brief facts of the case are that, assessee is an individual filed return of income for the A.Y. 2017-18 admitting a total income of Rs. 2,57,160/- and the return was summarily processed under section 143(1) of the Act on 25.06.2018. Subsequently, the case was selected for limited scrutiny through CASS to verify "Cash deposits during the demonetization period". Thereafter, statutory notices under section 143(2) and 142(1) of the Act were issued and served on the assessee. In response, assessee submitted required information through e-proce....

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....le to the facts of the case. 2. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the addition of Rs. 25,70,000 made u/s 69A of the Act towards unexplained cash deposits during demonization period and subjecting the same to tax u/s 115BBE of the Act. 3. Any other grounds may be urged at the time of hearing." 5. Ground Nos. 1 & 3 are general in nature and needs no adjudication. 6. Ground No. 2 is with respect to addition of Rs. 25,70,000/- under section 69A of the Act being unexplained cash deposits during demonetization period. Ld. Authorised Representative [hereinafter "Ld.AR"] submitted that assessee has withdrawn cash out of the maturity proceeds of the fixed deposits held with Allaha....

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....available. 10. Similarly, assessee has withdrawn Rs. 10,70,000/- on 14.09.2015 from Indian Bank, Srinagar Colony Branch and has made a cash deposits of Rs. 1,47,000/- during February 2016 which was immediately shifted to Fixed Deposits on March, 2016. 11. Considering the transactions pertaining to cash withdrawals and cash deposits in the bank account, we find no major entry in the corresponding bank statements. Accordingly, the contention of the Ld.AR that the assessee has withdrawn money and kept herself without depositing into the bank deserves acceptance. Further as observed by the Ld. CIT(A) after the withdrawal during the September, 2015 assessee has not redeposited the same into the bank account till November, 2016 whereas duri....