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2023 (6) TMI 770 - AT - Income TaxUnexplained cash credit u/s 68 - cash deposits during the demonetization period - additions under amended provisions of Section 115BBE - assessee is a senior citizen - HELD THAT:- As the pattern in bank account about the debit and credit also does not matches with the huge cash available with the assessee as on 01/04/2016. Thus, no justifiable reason to interfere with the additions made by Assessing Officer and confirmed by ld. CIT(A). However, as find that the Central Board of Direct Taxes (CBDT) vide its Circular No. 3 of 2017 dated 21.02.2017 have clarified that a relaxation of Rs. 2.50 lacs in a case of an ordinary deposit and Rs. 5.00 lacs in case of Senior Citizen. It was further clarified that the sources of such amount may be either of household savings or past income or the amount may have been received from any of the source mentioned in para 2 to 6 of that Circular. Thus, the assessee is given benefit of Rs. 5.00 lacs in terms of Circular of CBDT, thereby remaining amount of Rs. 31,42,500 – 5,00,000 = 26,42,500/- is upheld. In the result, ground No. 1 of the appeal is partly allowed. Taxability of addition under amended provisions of Section 115BBE of the Act at the higher rate - Division Bench of Jabalpur Tribunal in ACIT Vs Sandesh Kumar Jain [2022 (11) TMI 126 - ITAT JABALPUR] held that the amended provisions to take effect from 15/12/2016 itself so impliedly effective from 01/04/2017 i.e. for A.Y. 2018-19. Direct AO to tax the additions at the old rate of tax prescribed u/s 115BBE i.e. prior to amendment applicable w.e.f. 15/12/2016. Grounds No. 2 and 3 of the appeal are allowed.
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