No verification required where cash deposit is less than 2.5 lakh during demonetization: ITAT

The issue in this appeal of the assessee is regard to addition on account of cash deposit of Rs.2,30,000 during demonetization period.

In this matter, assessee during the year under consideration had deposited cash in his bank account of Rs.2,30,000 during demonetization period which was from his past savings and out of the cash gifts received on the occasion of birthdays/ festivals from his friends / relatives. On scrutiny, assessing officer made an addition of Rs.2,30,000/- on account of cash deposit as unexplained cash deposits u/s 69 of The Income Tax Act, 1961 (The Act).

Upon appeal, CIT(A) also upheld the addition made by Ld. A.O. without considering the contention of the appellant that the case of the appellant should not be scrutinized as the cash deposit is only Rs.2,30,000/- which is less than Rs.2,50,000/- as per the instruction of CBDT. Aggrieved by the order, assessee filed appeal before the tribunal.

ITAT in its order stated that in view of the CBDT Circular and relying on the decision of Co-ordinate Bench of Agra Tribunal in the case of Smt. Uma Agrawal, it is of the view that the explanation of the assessee about the source of cash deposits cannot be brushed aside without there being any evidence to the contrary. Therefore, ITAT direct the deletion of the addition of Rs.2 lakh upheld by CIT(A).

To Read Judgment Download PDF Given Below: