Even if Assessee accepted demonetized notes even after 08/11/2016 and deposited them in bank, addition cannot be made: ITAT Pune

 

In a landmark ruling, Pune ITAT has held that when source of cash deposit is explained then addition cannot be made merely because Assessee accepted demonetized notes even after 08/11/2016 and deposited them in the bank.

In the instant case, Assessee was a co-operative society that received demonetized notes from its members and deposited the same in its bank accounts. Ld. AO made an addition on the ground that Assessee has deposited demonetized notes and moreover Assessee was not allowed to collect such notes. Ld. CIT(A) accepted the source of cash deposit however, upheld the addition of the same logic as given by Ld. AO in assessment order.

Hon’ble Pune ITAT has accepted the contention of assessee and held that once the source of cash deposit is proved, the provisions of section 69A of the Income-tax Act does not attract even in case of demonetized notes.

The copy of the order is as under:

1726225395-ITA No. 1351 PUN 2023, Ms. Mauli Mahila Nagari Sahakari Path Sanstha Limited