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2022 (9) TMI 590 - Income Tax
Unexplained money u/s 69A - Unexplained deposit in the bank account - Assessee argued cash deposits was out of cash in hand with the members of HUF and due to demonetization Rs. 500 and Rs.1000 notes, the same was deposited in the bank account and nothing was from undisclosed sources - HELD THAT:- Once, the assessee has explained before the CIT(A) that the cash was deposited in the bank account after the demonetization as it was required to deposit in the bank otherwise the value of the currency would be zero and keeping the same with the assessee would be illegal.
The assessee has declared this deposit in the return of income and therefore, the explanation of the source as past saving of the assessee HUF and its members cannot be doubted having regard to the fact that in the past there are the entries of withdrawal of more than 1,00,000/- from the bank account of the assessee.
Though, these withdrawals were in the long past and there is a big gap between the withdrawals and deposits but once the assessee has declared this amount of Rs. 1,00,000/- and by considering this amount as well as the total income declared by the assessee at Rs. 1,39,090/- which is below a minimum amount of taxable income the assessment of the income of the assessee under the provisions of section 115BBE is not justified.
Accordingly when the assessee has explained the source of Rs. 1,00,000/- as past savings of the assessee HUF and its members and there is no other deposits during the demonetization the addition made by the Assessing Officer is deleted. The appeal of the assessee is allowed.