No addition if source of cash deposited during demonetization is explained by the assessee: ITAT

No addition if source of cash deposited during demonetization is explained by the assessee: ITAT The issue on this appeal of the assessee is regard to the addition made by AO on account of cash deposits during demonetization. In this matter, assessee was widow of government servant received family pension and other retirement benefits. The assesee withdrew the cash from bank account on the occasion of her daughter's wedding and redeposited in the bank account on account of postponement of marriage during the period of demonetization. The assessing made addition on the grounds that the assessee failed to substantiate the source of cash deposit in the bank account properly. CIT(A) also confirmed the addition. Aggrieved by the order assessee filed appeal before the tribunal. Before tribunal assessee submitted that the authorities below have taken note of the amount deposited to the bank account but have completely ignored a very relevant fact that originally the amount was received by the assessee as retirement benefits of assessee’s deceased husband and amounts were withdrawn in cash and thereafter due to postponement of marriage of her daughter, same was re-deposited to the bank account. Ld. Counsel submitted that the marriage was postponed and during this period, demonetisation was also announced by the Government. Therefore, the assessee was compelled to deposit the amount again to her bank account, source of which is self explained by the bank statement of the assessee and other relevant documents. ITAT was of the view that the assessee has successfully demonstrated the source of deposits. It is a matter of great concern that the Revenue Authorities are not only disputing the amount of cash deposit, but also the amount received by the assessee as family pension. Therefore, ITAT held that that the Assessing Officer has made additions without considering relevant evidence filed by the assessee and the ld. CIT(A) has also not properly considered and appreciated the explanation and documentary evidence filed by the assessee. Therefore, the addition made by the Assessing Officer and confirmed by the ld. CIT(A) has no legs to stand on sound principles of tax jurisprudence.