Cash Received from Members of Society is Source of deposit: ITAT Remits ₹29.46 Lakh Matter for filing Evidences [Read Order]
Observing that the assessee-society deserves one more opportunity to explain the source of cash deposits, the Tribunal restored the matter of unexplained cash deposits under Section 69A back to the file of the Assessing Officer (AO) for fresh adjudication.
Cash Received - Society - deposit - ITAT - taxscan
Cash Received - Society - deposit - ITAT - taxscan
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) remitted the issue of an addition of ₹29,46,500/- under Section 69A read with Section 115BBE of the Act, which was made on account of cash deposited in bank accounts during the demonetization period (AY 2017-18).
Dahisar Gramin Bigar Sheti Sahakari Pat Sanstha Maryadit (assessee) in the assessment proceedings, the AO added the entire cash deposit of ₹29,46,500, taxing it under Section 115BBE, as the assessee failed to provide corroborative evidence regarding the source of the cash.
Aggrieved by the AO’s order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) confirmed the addition by holding that lack of corroborative evidence.
Aggrieved by the CIT(A)’s order, the assessee filed an appeal before the ITAT. The Counsel for the assessee contended that the cash was received from the society’s members and that the source could not be treated as unaccounted income, citing judicial precedents from the Mumbai Tribunal.
The Counsel submitted that the necessary corroborative evidence could not be filed before the lower authorities and requested that the matter be restored to the file of the AO to allow the assessee a fresh opportunity to prove the source of the cash deposits.
The two-member bench comprising Pawan Singh (Judicial Member) observed the peculiar facts of the case, especially the contention that the addition was confirmed due to the lack of submission and evidence of the source of funds.
The Tribunal held that the assessee deserved one more opportunity to explain the source of the cash deposits. The Tribunal restored the matter back to the file of the AO with a direction to allow a fair and reasonable opportunity to the assessee before passing a fresh assessment order. The appeal of the assessee was partly allowed for statistical purposes.
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