The Income Tax Appellate Tribunal (ITAT), Pune bench has deleted an addition under section 115BBE of the Income Tax Act, 1961 considering the fact that the cash deposit during demonetization was out of the huge amount of alimony received from the husband.
The assessee, Ms. Deepa Satish Borse approached the Tribunal against the orders of the lower authorities.
The Assessing Officer, during the course of income tax proceedings, invoked sec.115BBE and made an addition regarding the assessee’s cash deposits during demonetization of Rs.10,14,500/-.
The assessee has contended that she had been receiving a handsome amount of almost Rs.1 lakh per month right from October, 2014 from her estranged husband Mr. Satish Borse. Learned counsel invited our attention Mr. Borse’s bank statements, corresponding cash withdrawals as well as his confirmation to this effect. Mr. Pathak further submitted that this assessee has also filed details of similar alimony receipts of almost Rs.95,000/- per month through banking channel postdemonetization as well.
A two-Member bench of ITAT comprising Shri Satbeer Singh Godara, Judicial Member and Shri G.D. Padmahshali, Accountant Member has held that “We find no merit in the Revenue’s foregoing arguments supporting the CIT(A)’s findings once it has come on record that the assessee’s matrimonial ties with her husband are witnessing a rough weather wherein the latter has already supported her case of having received the impugned sum by way of cash prior to demonetization for maintenance of herself and their sole girl child followed by similar arrangement post facto demonization by way of banking channel. We are of the opinion that the assessee’s husband’s supportive evidence by way of documentary evidence as well as confirmation satisfactorily discharges her onus of proving source of these cash deposits of Rs.10,14,500/- in issue. The impugned addition u/s.115BBE is directed to be deleted therefore.”
Shri Nikhil S. Pathak appeared for the assessee and Shri Ramnath P Murkunde appeared for the department.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
