2026 (7) TMI 1303

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....ter referred to as 'the Act' in short) for Assessment Year 2017-18. 2. The assessee has raised the following grounds of appeal: "Ground 1: The CIT (Appeals) erred in law and on facts by upholding the addition of Rs. 29,85,000/- made under Section 69A of the Income Tax Act, 1961. Ground 2: The CIT (Appeals) erred in holding that the Appellant failed to satisfactorily explain the nature and source of the cash deposits. When the entire cash deposit was accounted for in the books of account (Cash Book) and was sourced from prior bank withdrawals and cash received from the deceased husband, which are verifiable sources, the addition should have been deleted. Ground 3: The CIT (Appeals) err....

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....ffers from the AO's addition of Rs. 29,98,000/-, without clear reasoning or quantification. Ground 7: In the facts and circumstances of the case there is slight delay in filing the appeal which may be condoned as there is a reasonable cause. Ground 8: It is prayed that the addition of Rs. 29,85,000/- confirmed by the CIT (Appeals) be deleted, and the appeal of the Appellant be allowed. Additional Ground of Appeal The Appellant craves leave to raise these additional Grounds of Appeal before the Hon'ble ITAT. This are legal grounds and therefore, as per the decision of Hon'ble Supreme court in the case of National Thermal Power (229 ITR 383), it can be raised before the Hon&#39....

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....explanation, the assessee furnished cash book for the year under consideration and preceding years, monthly cash summaries, bank statements evidencing withdrawals and copy of cash book and return acknowledgment of her deceased husband. 3.1 The Assessing Officer, however, rejected the explanation observing that the assessee had no business activity, the cash book was created post facto, and the claim of holding huge cash balance for long period was improbable and against normal human conduct. The Assessing Officer accordingly treated the cash deposits of Rs. 29,98,000/- as unexplained money under section 69A of the Act. 4. Aggrieved by the assessment order, the assessee preferred appeal before the Ld. CIT(A). The Ld. CIT(A) confirmed t....

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....nd was prepared only to explain demonetization deposits. Therefore, the Assessing Officer was justified in rejecting the books and invoking section 69A of the Act. 8. We have heard rival submissions and perused the material available on record. 8.1 The undisputed fact emerging from record is that the assessee had furnished cash books for the relevant year as well as preceding years, bank statements evidencing withdrawals and records relating to cash received from her deceased husband. The assessee has consistently explained before the lower authorities that the cash deposited during the demonetization period was sourced from opening cash-in-hand available as on 01.04.2016 and cash received on death of her husband. In support of the sa....