Explanation of cash deposit during demonetization period

Last updated: 18 October 2021

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Quick Summary

This case involves an appeal by an assessee concerning cash deposits made during the demonetisation period. The tax tribunal dismissed the appeal because the assessee failed to provide sufficient evidence to explain the source of the deposited cash. The tribunal upheld the findings of the National Faceless Appeal Centre, stating that without documentary proof, the claims could not be substantiated.

Court :
ITAT Delhi

Brief :
This appeal by the assessee is preferred against the order of the National Faceless Appeal Centre (NFAC) dated 05.03.2021 pertaining to A.Y. 2017-18.

Citation :
ITA No.481/Del/2021

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘SMC’, NEW DELHI
BEFORE SH. N. K. BILLAIYA, ACCOUNTANT MEMBER
(THROUGH VIDEO CONFERENCING)
ITA No.481/Del/2021
Assessment Year: 2017-18

Puneet Utreja
B-1/6, Rana Pratap Bagh,
New Delhi-110007
PAN No.ABEPU1160G

Appellant by Sh. Prakash Mishra, CA
Respondent by Sh. Vipul Kashyap, Sr DR
Date of hearing: 30/09/2021
Date of Pronouncement: 04/10/2021
ORDER

This appeal by the assessee is preferred against the order of the National Faceless Appeal Centre (NFAC) dated 05.03.2021 pertaining to A.Y. 2017-18.

2. Briefly stated the facts of the case are that the return of income filed by the assessee was selected for scrutiny assessment. The reason for the selection of the return for scrutiny assessment was “Cash deposit during demonetization period”.

3. Before me the counsel could not adduce any evidence to dislodge the findings of NFAC on the contrary reiterated what was stated before NFAC. In absence of any documentary evidence brought on record in support of claims made for explaining the source of cash deposit I do not find any reason to interfere with the findings of the NFAC.

4. In the result, the appeal filed by the assessee is dismissed. Order pronounced in the open court on 04.10.2021.
Please find attached the enclosed file for the full judgement

FAQ :

The tax return was selected for scrutiny assessment because of "Cash deposit during demonetisation period."

The appeal filed by the assessee was dismissed by the Income Tax Appellate Tribunal.

The appeal was dismissed because the assessee's counsel could not provide any evidence to explain the source of the cash deposit, and no documentary evidence was presented to support the claims.

No, the tribunal found no reason to interfere with the findings of the NFAC due to the lack of supporting evidence from the assessee.