*****NRI couldn’t Prove Source of Cash Deposit during Demonetization: ITAT upholds Addition [Read Order]–TAXSCAN

Read More: https://www.taxscan.in/nri-couldnt-prove-source-of-cash-deposit-during-demonetization-itat-upholds-addition/175912/

lipped from: https://www.taxscan.in/nri-couldnt-prove-source-of-cash-deposit-during-demonetization-itat-upholds-addition/175912/


By Rasheela Basheer – On May 18, 2022 6:03 pm

NRI - Cash Deposit - Demonetization - ITAT - NRI - taxscan

The Income Tax Appellate Tribunal (ITAT), Bangalore has upheld an addition against a non-resident Indian (assessee)since the assessee was unable to prove the cash deposit during demonetization.

The assessee, Ms. Sneha Nerli had filed the return of income declaring an income of Rs.1,50,000. During the relevant year, the department noted that the assessee had deposited cash amounting to Rs.10,10,000/- in her CanaraBank account during the period of demonetization. During the assessment proceedings, the assessee was asked to explain and submit evidences to prove the source of the deposit. However, the AO has noted that assessee was not able to submit any substantial evidence to explain the source of cash deposit. In the absence of any substantial evidence, the AO has brought to tax the amount of Rs.10,10,000/- as unexplained money under section 69A of the Income Tax Act, 1961 and passed the order.

The assessee claimed that she has been working in Dubai and that the cash deposit in India were on account of amounts earned in Dubai and brought to India. Assessee filed salary certificate for the period of 2013-14.

Shri Chandra Poojari, Accountant Member has observed that the salary credited into bank account is also witnessed. Subsequently, for the period 2017 to 2020 the assessee has not been able to produce any salary certificates or proof of credits during the year 2015 or 2016.

Confirming the income tax addition, the Tribunal held that “Assessee asked to produce any custom receipt for having brought cash into India. The assessee expressed inability to produce any custom receipt or having brought cash into India. The salary of the assessee from working in Dubai during the year 2013-14 at 5600 Dirhams p.m. The total Dirhams are 60000 converted into Indian currency itself works out to around Rs.10.5 lakhs p.a. The assessee also have personal expenditure in Dubai. The assessee’s explanation before lower authorities that cash deposited into Indian bank account is from her salary earning from Dubai but assessee was not able to submit any proof of amountstransferred to Indian account and any cash withdrawn from the Indian account. Being so, we are not in a position to uphold the grounds raised by assessee to come to a conclusion that the deposit into account during demonetization period is from the known sources.”To Read the full text of the Order CLICK HERE

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