No I-T scrutiny on cash deposits up to Rs 2.5 lakh by housewives post Demo: ITAT


PTI, Jun 23, 2021, 2:32 PM IST

New Delhi: Cash deposits of up to Rs 2.5 lakh by housewives post demonetisation will not come under I-T scrutiny as the Income Tax Appellate Tribunal (ITAT) has held that such deposits cannot be treated as income of the assessee.

Ruling on an appeal filed by an individual, the Agra bench of ITAT said the order would act as a precedent for all similar cases.

The appellant, a housewife Uma Agrawal of Gwalior, had declared total income of Rs 1,30,810 in her income tax return filed for fiscal 2016-17. However, post demonetisation, the assessee deposited the Rs 2,11,500 cash in her bank account.

The case was selected for scrutiny assessment, during which the assessee was asked to explain the cash deposit of over Rs 2.11 lakh. The assessee had explained that she had collected/saved the above sum from her previous saving, given by her husband, son, relatives for herself and her family.

The CIT (Appeals) did not accept the explanation and confirmed the Assessing officer’s order treating the cash deposit of Rs 2,11,500 as unexplained money. Following this, the appellant approached the ITAT.

The Tribunal, after going through all the facts and arguments, said “we are of the opinion that the amount deposited by the assessee during the demonetisation cannot be treated as income of the assessee. Hence the appeal of the assessee is allowed.”

Observing that housewife’s contribution in the family is “immeasurable”, the Tribunal said quoting an order by the Supreme Court, which mentioned that, in India, nearly 159.85 million women stated that ”household work” was their main occupation compared to only 5.79 million men, as per 2011 Census.

“Women all over the country, had been accumulating cash that they had saved for themselves from household budgets, by haggling with vegetable sellers, tailors, grocers and assorted traders…

“Years of stashing in whatever little cash gifts they received from relatives during festival times and years of tucking away the change they found in the pants that they washed every day, however, suddenly they were left with no option but to deposit the amount in the denomination of Rs 500 and Rs 1000 notes in the banks on account of Demonetisation scheme 2016, (as) these notes were no more legal tenders,” the tribunal added.

Exempting women who deposited less than Rs 2.50 lakh during the demonetisation period, the ITAT said “we may clarify that this decision may be treated as precedent in respect to proceedings arising out of the cash deposit made by the housewives during the demonetisation scheme 2016, only up to the limit of Rs 2.5 lakhs only.”

Usually, ITAT ruling is binding on the applicant and the jurisdiction tax officer and is used as reference in similar matters.

Post demonetisation in November 2016, the income tax department had in 2017 said no questions will be asked about cash deposits of up to Rs 2.5 lakh and only those accounts will be probed that do not match the tax returns.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Jayant Patil claims BJP used irrigation ‘scam’ to blackmail Ajit Pawar; Fadnavis, NCP chief hit back

Medical College expels 5 MBBS students from hostel for ragging juniors

Insulting women is in DNA of Cong leaders, alleges Jharkhand BJP

Man arrested from Delhi for calling up Pappu Yadav posing as aide of Lawrence Bishnoi

Tejasvi Surya hits out at Kharge, CMs of Cong-ruled states over poll promises

Farooq Abdullah seeks inquiry into spike in terror attacks in Valley since Omar’s swearing-in

Sabarimala pilgrims to get free insurance coverage of Rs five lakh

Related Articles More

Jayant Patil claims BJP used irrigation ‘scam’ to blackmail Ajit Pawar; Fadnavis, NCP chief hit back

Medical College expels 5 MBBS students from hostel for ragging juniors

Insulting women is in DNA of Cong leaders, alleges Jharkhand BJP

Man arrested from Delhi for calling up Pappu Yadav posing as aide of Lawrence Bishnoi

Shah Rukh Khan turns 59, fans wait outside Mannat to catch superstar’s glimpse

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Jayant Patil claims BJP used irrigation ‘scam’ to blackmail Ajit Pawar; Fadnavis, NCP chief hit back

Medical College expels 5 MBBS students from hostel for ragging juniors

Insulting women is in DNA of Cong leaders, alleges Jharkhand BJP

Man arrested from Delhi for calling up Pappu Yadav posing as aide of Lawrence Bishnoi

Tejasvi Surya hits out at Kharge, CMs of Cong-ruled states over poll promises

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.