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2023 (3) TMI 905 - AT - Income TaxAddition u/s 69A - cash deposit during the period of demonetization in the bank account maintained by the assessee - declaration made under Pradhan Mantri Garib Kalyan Yojna Scheme, 2016 [PMGKY] - as submitted once advance tax was duly paid on the sum deposited in the bank account, the said sum could not be taxed as income u/s 69A - HELD THAT:- We fail to understand how the amount declared under the PMGKY Scheme, 2016 becomes taxable u/s 69A of the Act as done by the Assessing Officer. Section 69A shows that this section is attracted when some unexplained money for which the assessee is found to be the owner and such money is not recorded in the books of accounts, if any, maintained by the assessee for any source of income for which the assessee does not offer any explanation or the explanation of the assessee is not satisfactory in the opinion of the AO. The facts explained clearly show that it is the assessee who came forward with the explanation that the amount deposited in the bank account on which advance taxes have been paid in November 2016 and subsequently, the same was offered under PMGKY Scheme, 2016 cannot become assessable u/s 69A of the Act. Considering the scope of the Scheme in light of the Explanatory Notes, there is no reference to the Certificate issued by designated PCIT but definitely there is a reference to valid declaration made under the Scheme. Assessee has made a valid declaration under the PMGKY Scheme, 2016 and has duly paid taxes/penalty and has also deposited requisite amount under the PMGKY Scheme, 2016. By no stretch of imagination provisions of section 69A can be applied on the aforementioned facts. Therefore, the entire addition made by the AO and confirmed by the ld. CIT(A) do not hold any water and deserve to be deleted. Direct the Assessing Officer to delete the impugned addition made u/s 69A of the Act in respect of cash deposit in the bank account. Decided in favour of assessee.
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