Housewives having no business income, would not be questioned if bank deposits during demonetisation were less than Rs 2,50,000, says ITAT


Quick Summary
The Income-Tax Appellate Tribunal (ITAT) in Agra has ruled that housewives with no business income should not be questioned if their bank deposits during the demonetisation period were less than Rs 2,50,000. This decision came after an appeal by an individual who had deposited Rs 2,11,500, claiming it was from previous savings and gifts. The ITAT considered the source of funds and the taxpayer's financial standing.

Court :
ITAT Agra

Brief :
This appeal filed by the assessee against the Order dated 25/03/2021 by the National Faceless Appeal Centre, the following grounds raised as under: -

Citation :
ITA No.35/Agr/2021

In the Income-Tax Appellate Tribunal,
Agra Bench, Agra

Before : Shri Laliet Kumar, Judicial Member And
Dr. Mitha Lal Meena, Accountant Member

ITA No.35/Agr/2021
Assessment Year 2017-18

Smt. Uma Agrawal
Baba Kapur Sunaran Ka Mohalla,
Rajaji Ka Bada
Gwalior M.P.
PAN: BDPPA6915F
(Appellant)

V.S. 

I.T.O –1( 3)
Gwalior, M.P.
(Respondent)

Appellant by Mr Manuj Sharma Adv and Rajender
Sharma adv
Respondent by Sh. Mazhar Akram, Sr. DR

Date of Hearing 14.06.2021
Date of Pronouncement 18 .06.2021

ORDER

Per Laliet Kumar, J.M.

This appeal filed by the assessee against the Order dated 25/03/2021 by the National Faceless Appeal Centre, the following grounds raised as under: -

“1. On the facts and in the circumstances of the case the learned CIT (A) was not justified on facts and in law in not accepting appellant's explanation about cash deposit of Rs. 211500/- in bank during demonetization period and confirming the Assessing officer's order treating the cash deposit of Rs. 211500/- as unexplained money u/s 69A. The addition of 211500/- may kindly be deleted or in the alternative suitable relief be allowed.

2. The appellant craves leave to add, amend, alter, modify or substitute any ground at the time or before hearing of appeal.” Brief Facts

1. The appellant, an individual filed return of income for Assessment Year 2017-18 on 13/03/2018, declaring total income of Rs. 1,30,810/-.

2. During the period of demonetization, the assessee deposited the cash of Rupees 211500 /-in our bank account. It was the case of the assessee that the assessee had collected/ saved the above said sum from her previous saving, given by her husband, son, relatives for the purposes of her and family future.

3. The case of the assessee was selected for scrutiny assessment fornthe reason that the cash was deposited in the bank after the demonetization scheme, announced by the revenue.

4. During the course of assessment proceedings, the appellant was asked to explain the cash deposits of Rs. 2,11,500/- in the Nagrik Sahkari Bank, made during the period of demonetization from 09/11/2016 to 30/12/2016.

To know more in details find the attachment file
 

FAQ :

The ITAT has stated that housewives with no business income should not face scrutiny if their bank deposits during demonetisation were below Rs 2,50,000.

The appellant, Smt. Uma Agrawal, deposited Rs 2,11,500 in her bank account during the demonetisation period.

The appellant claimed the money was from her previous savings and had been given to her by her husband, son, and relatives for future family needs.

The case was selected for scrutiny because the cash deposit was made in the bank after the demonetisation scheme was announced.

The Rs 2,50,000 threshold is significant as deposits below this amount for housewives with no business income are generally not expected to be questioned.

 
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