TaxTMI 
TaxTMI 
2025 (2) TMI 1875
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.... assessee has raised the following grounds of appeal:- "1. The learned ITO has erred both on facts & law in assessing the below exemption limit income into Rs. 4,09,530 by not accepting SOP issued by CBDT vide Instruction No. 03/2017 dated 21.02.2017 in which it was instructed to assessing officers for not conduction further verification if total cash deposit of demonetized currency was up to Rs. 2.5 lakh. 2. That the learned ITO has erred both on facts & law in assessing the income under section 144 since notice issued under section 142(1) on 06.05.2019 was void-ab-initio itself due to new SOP dated 05.03.2019 and there is no mention of filing of ITR in new notice issued under section 142(1). 3. That the learned ITO has erred both on facts & law by not accepting the share of appellant's son into the overall deposit of Rs. 2,48,000.00 as appellant's son was not having any other bank account. 4. That the learned ITO has erred both on facts & law in applying rate of income tax mentioned under section 115BBE since the section was introduced after the demonetization period. 5. That the learned ITO has erred both on facts & law in ass....
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....come was below the basic exemption limit. Notice under section 133(6) of the Act was issued to the branch managers of various banks where cash stood deposited. The Learned AO obtained the bank statements for the period 1-4-2015 to 31-3-2018 from the said banks. From the bank statements obtained, it was found by the Learned AO that the bank account maintained with Syndicate Bank, Zilla Parishad, Mathura was in the name of UP Government Employees Welfare Corporation, Lucknow and PAN of that institute was AAATU0957A wherein a sum of Rs 31,43,140/- was deposited in cash during demonetization period. However, with regard to other bank statements obtained by the Learned AO, it was found that the account with Bank of Baroda was jointly in the name of the assessee and his son Shri Shashank Gupta. On examining this account, it was found that it was a loan account where cash of Rs 2,48,000/- was deposited in the bank account on 29-11- 2016. Further, the bank account maintained with State Bank of India, Mathura Cantonment, Mathura was also examined by the Learned AO which was found to be jointly in the name of the assessee, Smt Achala Gupta and Shri Shashank Gupta wherein cash of Rs 2,45,000/....
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....ally paid any tuition fees to Shri Shashank Gupta. Three students responded by stating that they had not taken any coaching from Shri Shashank Gupta and had not paid any tuition fees to Shashank Gupta. However, the Learned AO observed that Rs. 48,000/- could be reasonably estimated to be the tuition fees received by Shashank Gupta and accepted the same as a source for the cash deposit made and made an addition of remaining Rs. 2,00,000/- as unexplained money under Section 69A read with Section 115 BBE of the Act. Similarly, with regard to deposits made in State Bank of India in the total sum of Rs. 2,45,000/-, the assessee explained that the account is in the joint name of himself, his wife and his son and his wife was earning some income from knitting and weaving and had received gifts from various relatives on social occasions in addition to stree dhan, which were lying with her and the same stood deposited in the bank account pursuant to the announcement of demonetization. This explanation of the assessee was accepted by the Learned AO with regard to deposit made in State Bank of India. The Learned AO only sustained the addition of Rs. 2,00,000/- under Section 69A read with Sect....
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....ng provisions of the Income- tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 ('the Bill') has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision. Further, in the wake of declaring specified bank notes "as not legal tender", there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy. In this backdrop, an alternative Scheme namely, "Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016' (PMGKY) has been proposed in the Bill. The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclo....