TaxTMI 
TaxTMI 
2025 (4) TMI 2089
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....ment dt. 20/12/2019 passed u/s 143(3) of the Act anent to assessment year 2017-18 ['AY' hereinafter]. 2. Tersely stated facts of the case are that; the assessee an individual filed her return of income on 15/07/2017 declaring income of Rs. 3,34,640/-. The case of the assessee selected for scrutiny u/s 143(2) of the Act to examine 'large value cash deposit during demonetization compared to returned income'. Finding assessee's explanation about nature & source of special bank note ['SBN' hereinafter] worth Rs. 10,46,000/- & Rs. 7,50,000/- deposited by her into Karnataka Bank & Syndicate Bank accounts respectively, unsatisfactory the Ld. AO culminated the proceeding by bringing to tax entire deposits u/s 69A r.w.s. 115BBE of the Act as unex....
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....with that of income returned for the year under consideration. The appellant's twofold explanation that (a) SBN represents accumulated balance of past cash withdrawal from financial year 2012-13 to 2016-17 and (b) saving from cash received from family members for her upkeepment, did fail to inspire any confidence to the Ld. AO, hence treated the same as unexplained money u/s 69A and brought to tax u/s 115BBE of the Act. When matter travelled up in appeal, the Ld. NFAC countenanced the addition echoing with the views of his tax authority below. While disbelieving the explanation tendered by the appellant, the tax authorities below of the view that, a pattern of regular cash withdrawal over a period of five explicitly demonstrates that those ....
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....essential, but saving is always preferred first from spending out of such earning. The combination of prudence, innovation, and family values in Indian culture inherently influential for saving habits for uncertain economic circumstances. This in turn persuades us to dismantle the tax authorities believe that, nothing could out of the five years cash withdrawal have left with appellant for depositing into her bank accounts during demonetisation period. However as we already stated of having no rock-solid yardstick to work out correct amount or percentile of cash balance left to ceased the dispute, we are left best with applicable judicial precedents to rely-on. 8. We note that, where assessee not having satisfactorily proved source & nat....
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....the appellant during demonetisation. As this reasonable credit would meet the end of justice in view of the ratio laid in 'Shivcharan Dass Vs CIT' [1980, 126 ITR 263 (P&H)], respectfully following the same, we therefore set-aside the impugned order and direct the Ld. AO to allow credit to the extent of 1/3 amount of total cash withdrawn of Rs. 10,53,000/-and treat it as pre-available for deposits as SBN and restrict the addition accordingly. The ground thus stands partly allowed. 10. Now next comes to a challenge of applicability of section 115BBE of the Act. The appellant denies the addition to be tax at accelerated rate of 60% as against 30% rate of tax which was prevalent till 31/03/2017. Per contra, the Revenue contended that, the pr....
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.... effective date of operation of enhanced 60% rate of taxation is with respect (a) to date transactional income offered/assessed to tax u/s 68 to 69D of the Act or with respect to assessment year? The former proposition settles the dispute in favour of appellant and the later in favour of the Revenue. 12. It is trite law that, legislations which modified accrued rights or which impose obligations or impose new duties or attach a new disability or imposes new taxes, such legislation or amendments have to be treated as prospective unless the legislative intent is clearly to give the enactment a retrospective effect; unless the legislation is for purpose of supplying an obvious omission in a former legislation or to explain a former legislat....