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2023 (11) TMI 323 - ITAT HYDERABADAddition u/s 69A - large volumes of cash deposits in her bank account during the demonetization period compared to the declared income in her returns - assessee, being an old lady, had deposited a sum of Rs. 25 lakhs in her bank account after demonetization and after depositing the said amount in the bank account, she transferred the same to her daughter’s account by way of cheque - HELD THAT:- There is no cavil that the assessee was assessed to income tax for the last many years and the above side is not disputed by the Assessing Officer or by the ld.CIT(A). In fact, the ld.CIT(A) had reproduced the summary of ITRs from A.Ys. 2013-14 to 2017-18 - The grand total of all the net income for the 5 years roughly comes to Rs. 34 lakhs, which is more than the amount deposited by the assessee on 21/11/2016 i.e., 25 lacs. In our opinion, it is not expected for a person who is earning the income from rents to save and preserve the whole amount. In fact, some of the amounts must have been spent by the assessee either for herself or for the welfare of the family or on the education of the grandchildren etc. A balance is required to be drawn between the interests of the assessee as well as the interests of the revenue. Further during the period from 01.04.2016 to 21.11.2016, there was no debit entry in the bank account of the assessee, which clearly shows that the assessee did not have the active bank account even prior to the period of demonetization. Thus explanation given by the assessee merit consideration, and the amount deposited by the assessee in her account was required to be considered from her previous holdings. However, as pointed by the ld. DR, the whole amount deposited in the bank cannot be accepted to be explained. Considering the totally of the facts, social status of the assessee and the fact that the assessee had passed away, ends of the justice would met if the addition of Rs. 5,00,000/- is confirmed out of the addition of Rs. 25,00,000/- u/s 69 of the Act on estimation basis, and the remaining amount of Rs. 20 lakhs is deleted. Decided partly in favour of assessee.
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