TaxTMI 
TaxTMI 
2025 (2) TMI 938
X X X X Extracts X X X X
X X X X Extracts X X X X
....sit during the demonetization period." 2.3 That a statutory notice u/s 143(2) of the Act was issued on 24/09/2018 by the then ITO, Ward-3, Rohtak. Later on the case was transferred to the Income Tax Officer, Ward-3, Ambala vide letter No. 5732 dt. 07/08/2019 and the ITO Ward-3, Ambala, transferred the case to ITO, Ward-5, Ambala. 2.4 That thereafter, notices under section 142(1) of the Act alongwith Annexures were issued to the assessee on 19/09/2019, 05/11/2019, 19/11/2019 and 30/11/2019. 2.5 That the assessee filed reply on portal on 27/09/2019, 22/10/2019, 14/11/2019, 21/11/2019, 28/11/2019, 03/12/2019 and 12/12/2019. 2.6 That the Income Tax Department called for Bank statement under section 133(6) of the Act, alongwith KYC in formation from following banks: Sr. No. Name of the Bank Address of the bank Address of the Bank 1. Oriental Bank of Commerce Hissar Road, Ambala City 2. Bank of Baroda Court Road, Ambala City 3. Punjab and Sind Bank Dev Samaj College Road, Ambala City 4. Punjab National Bank Near Court Road, Ambala City 5. State Bank of India Court Road, Ambala City 6. State Bank of Patiala G.T. Road, Ambala City 7. Union Bank of India Court Ro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d herewith in the pdf cashflow. 2. Regarding "Please furnish the reasons for cash withdrawal in small amounts in the month of June, 2016." The amount is the account closing amount. Due to the inconvenience to climb the ramp or stairs of the bank, I have decided to close the accounts. I think you are aware of the crime rate against senior citizens and crime rates in cash handling. Being a 71 years old lady and my husband being a 81 years old man, it is our usual practice to do cash transactions in small amounts so that we may remain safe and secure. 3. I have not deposited demonetized currency immediately after demonetization in lump-sum but it has been deposited with in due course of time much earlier from the given time limit of 31.12.2016. Being a 71 years old lady and my husband being a 81 years old man and out of our usual practice, we have decided to deposit it in small amounts so that we may remain safe. Although it was not an easy job for us yet being an honest senior citizens of India, we have tried our best to do our duty towards our nation." 2.12 That Ld. AO vide assessment order bearing no. ITBA/AST/S/143(3)/2019-20/1023353157(1) dt. 28/12/2019 has made addition of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e convincing and acceptable. However, the explanations on various queries raised as regards the genuineness of the source of the cash deposit are not found to be genuine. The demonetization was declared in the evening of 08/11/2016, if the assessee had any genuine cash it could or should have been deposited immediately after declaration of demonetization. Keeping in view the facts of the case and reply filed by the assessee, genuineness of cash deposits of Rs. 10,46,500/- of specified bank notes is not proved. Hence; addition of Rs. 10,46,500/- is made to the taxable income of the assessee u/s 69A of the Income Tax Act, 1961. The assessee had failed to prove this fact that the cash deposited during demonetization period are normal receipts and therefore, I hold that the cash deposited during demonetization period, represents income from undisclosed sources and the same is covered under the provisions of Section 69A of the Income Tax Act. 2.14 That the assessee being aggrieved by the aforesaid assessment order dt. 28/12/2019 prefers first appeal under section 246A of the Act before CIT(A) who by the impugned order has dismissed the appeal of the assessee. Being aggrieved by the i....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assumption that cash deposits were not explained properly. The assessee has demonstrated that source of cash withdrawals were made before demonetization period and that the bank account details submitted to the Ld. AO were sufficient to establish the legitimate source of these funds. The explanation offered to Ld. AO is plausible, reasonable and prudent. The source of cash is explained as previous withdrawals from bank account of assessee only. Explanation given is that there was accumulation of amount by a senior citizen due to several concerns like safety, feeling of uncertainty etc. The core evidence of source is earlier withdrawal from bank of assessee itself of earlier years. The Ld. CIT(A) also failed to appreciate that no evidence has been brought on record by the AO to prove that the funds deposited during demonetization period were from unexplained on illegal sources. The Ld. AR basis chart below contended that source of cash deposit is earlier withdrawals from banks of the assessee itself aggregating to Rs. 9,61,556 and old saving / earning of Rs. 84,944/- aggregating to Rs. 10,46,500/- which came to be deposited. Date Name of Bank A/c No. Cash withdrawn (Rs.) 21/03/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t 2016. The amendment increased the rate of tax to 60% for income determined under section 68,69,69A, 69B, 69C and 69D effective from 15/12/2016 whereas assessee's deposit occurred before amendment i.e; by 24/11/2016 and therefore the tax rate of 30% (as applicable before the amendment) should have applied. Further if section 69A is not applicable on assessee then the special rate of tax charged by the AO u/s 115BBE of the Act is also not applicable that it would be contrary to the law and provisions of the Act to apply the same. Reliance was placed on judgment of Hon'ble Supreme Court of India in case of CIT(Central)-1, New Delhi Vs. Vatika Township (P) Ltd. reported in (2024) 367 ITR 466 (SC). 3.5 Per contra, the Ld. DR has supported the order of Assessment and the impugned order. 4. Observations Findings & Conclusions 4.1 We now have to decide the legality validity and proprietary of the impugned order basis records of the case. 4.2 We have examined the records of the case and have heard rival submissions. We are of the considered view that assessee basis copies of bank statements (page 42 to 51 of PB) has successfully demonstrated that total cash deposit of Rs. 10,46,500/- ....