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2023 (3) TMI 1234 - AT - Income TaxAddition of cash deposit and invoking of section 115BBE - DR submitted the assessee did not filed return of income and what was the reason for keeping such huge cash at home was not properly explained therefore the addition is sustainable and Ld. CIT(A) was right in confirming the same - assessee submitted that the cash in hand and cash withdrawn from the banks was partly utilized and partly kept by the assessee for emergency purposes and when the demonetisation was announced then the assessee was compel to deposit cash in hand to her bank - HELD THAT:- When the assessee suffering with serious diseases requiring emergency treatment at any time in super speciality hospital then it is incumbent upon the assessee to have sufficient financial resources ready in hands to meet any unforeseen serious situation. In such a position if a super senior citizen widow lady having no other means of income is keeping cash in hand then it would not be taken as doubtful conduct of assessee attracting the rigor of taxing provisions to such amount. Obviously after declaration of demonetization the assessee was compel to redeposit the cash amount with her bank and such a situation AO was not correct in treating the cash deposit as assessee’s income from undisclosed sources. Therefore authorities below were not justified in making addition in the hands of assessee. Accordingly ground no. 1 of assessee is allowed. Interest on FDR received by the assessee and widow pension - Amount was admittedly received by the assessee during FY 2016-17 pertaining to A.Y. 2017-18 and hence the Assessing Officer is entitled to take in to consideration these amounts. The factum of payment of interest on the loan taken by the assessee against FDR cannot be held as adjustable with the FDR interest received by the assessee. Therefore grounds no. 2 and 3 of assessee are dismissed. The AO is directed to recalculate tax liability of assessee, if any, accordingly.
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