Pernika Gupta, New Delhi V. ACIT, Central Circle, Karnal

ITA 1297/DEL/2022

AI Insights

The case involves Pernika Gupta, the appellant, who contested an addition of Rs. 2,40,000 to her income, which was attributed to cash deposits in her bank account during the demonetization period in India. The Assessing Officer had made this addition, but it was challenged based on a CBDT instruction that exempted individuals from scrutiny if their cash deposits were below Rs. 2,50,000. The Tribunal found in favor of the appellant, citing the specific guidelines provided by the CBDT, which were not adhered to by the lower tax authorities.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113137 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-09-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 04-09-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 29-05-2022
• Laws Referred To: CBDT Instruction No. 3/2017
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

I.T.A. No. 1297/Del/2022 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” NEW DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI M BALAGANESH, ACCOUNTANT MEMBER आ .अ.स ं /.I.T.A No.1297/Del/2022 /Assessment Year:2017-18 Pernika Gupta C-5/2A, Opp. CC Colony, Rana Pratap Bagh, New Delhi. ब म Vs. ACIT Central Circle, Karnal. PAN No. AWPPG0269L अ Appellant /Respondent Assessee by Shri Ved Jain, Advocate & Shri Aman Garg, CA Revenue by Shri Vivek Vardhan, Sr. DR स ु नवाईक तारीख/ Date of hearing: 05.09.2023 उ ोषणाक तारीख/Pronouncement on 12.09.2023 आदेश /O R D E R PER C.M. GARG, J.M. This appeal has been filed by the Assessee against the order of Commissioner of Income Tax (Appeals)-3, Gurgaon dated 19.05.2022 for the AY 2017-18. 2. The Ld. Counsel submitted that except ground no. 5 & 6 the assessee does not want to press other grounds of appeal. Ld. Counsel submitted that the assessee is an individual and Assessing Officer made addition of Rs.2,40,000/- on account of cash I.T.A. No. 1297/Del/2022 2 deposited in the bank account of assessee during demonetization period and there was CBDT Instruction No. 3/2017 by which the tax authorities were directed not to undertake any investigation or action in the cases of individuals where the cash deposits are less than Rs.2,50,000/-. Therefore, the appeal of assessee may kindly be allowed and AO may kindly be directed to delete the addition. 3. Replying to the above, the Ld. CIT-DR supported the orders of the authorities below. However, he did not controvert that there is CBDT Instruction (supra) directing the tax authorities not to investigate and take action in the cases where cash deposits are less than Rs.2,50,000/- during demonetization period. 4. In view of above, since the cash deposits by the individual assessee, in the present case, is Rs.2,40,000/- which is less than the prescribed limit as per the CBDT Instruction No. 3/2017 para 1.1 of guide line. Therefore, the sole grievance of assessee is allowed and AO is directed to delete the addition. 5. In the result, appeal of the assessee is allowed. Order pronounced in the open court on 12.09.2023 Sd/- Sd/- (M BALAGANESH) (C.M. GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER I.T.A. No. 1297/Del/2022 3 Dated:12.09.2023 *Kavita Arora, Sr. P.S. Copy of order sent to- Assessee/AO/Pr. CIT/ CIT (A)/ ITAT (DR)/Guard file of ITAT. By order Assistant Registrar, ITAT: Delhi Benches-Delhi