💸 Case Law on Cash deposit upto Rs 2.5 L during demonetisation:
💎 Smt Uma Agrawal (127 taxmann.com 735 Agra ITAT) ⚖️
🌎 Facts:
🌴 1. Assessee was a housewife and had deposited Rs 2,11,500 in her bank account.
📍 2. She had no business and claimed before the AO that this cash was out of her savings over a period of time and also claimed that after demonetisation, she had no option but to deposit the cash in the bank.
🎋 3. AO did not accept the contention and added the amount to income U/S 69A as unexplained money.
🇮🇳 Note: As per Insstruction 3/2017 dated 21/2/17, AO cannot tax cash deposit less than Rs 2.5L during the demonetisation.
⚖️ The ITAT held as below:
🍉 1. The small amount of Rs 2,21, 000/ would have been saved by her from various activities undertaken by her in the last many years.
🧘🏻♂️ 2. No evidence has been brought on record to prove that the deposit was from unexplained sources.
🍓 3. The word “may” had been used by the statute under section 69A, therefore applying the same analogy as laid down by SC in the case of Smt. P.K. Noorjahan(supra), we are of the opinion that the amount deposited by the assessee during the demonetization cannot be treated as income of the assessee.
🌱 4. Hence the appeal of the assessee is allowed
🌎 Footnote: Tribunal said that this decision may be treated as a precedent in respect to proceedings arising out of the cash deposit made by the housewives during the demonetization scheme 2016, only up to the limit of Rs 2.5 lakhs only.
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