ITAT Delhi Accepts Cash Deposits as Salary Savings, Religious Practice and Lack of Other Income cited
The assessee, a salaried teacher, deposited ₹23.22 lakhs in cash during the demonetization period, which the Assessing Officer treated as unexplained and added ₹21.22 lakhs under Section 69A after allowing ₹2 lakhs for household expenses. The assessee contended that he routinely withdrew his entire salary in cash due to religious beliefs and had accumulated the deposited amount over several years. Though the CIT(A) granted partial relief by accepting withdrawals from only the last three assessment years, the Tribunal found this restrictive.
The ITAT noted that there was no evidence of any alternate income source and accepted that all cash deposits were out of past salary savings. Consequently, the entire addition was deleted and the appeal was allowed in full.
The copy of the order is as under:
