No investigation on cash deposits of housewives up to Rs 2.5 lakh after demonetisation: ITAT – News18

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

Giving its verdict on the petition filed by a person, the Agra bench of ITAT said that this order will be treated as precedent for all such cases. Uma Agarwal, a housewife from Gwalior, declared a total income of Rs 1,30,810 in her income tax return for the financial year 2016-17, while she deposited Rs 2,11,500 in cash in her bank account after demonetisation. .

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Income Tax Department selected this matter for investigation

The Income Tax Department took up the matter for investigation and the assessee was asked to explain the additional cash deposit amounting to Rs 2.11 lakh. Aggarwal told that from the amount given by her husband, son, relatives for the family, she deposited the above amount as savings.

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The CIT (Appeals) did not accept this explanation and confirmed the order of the Assessing Officer treating the cash deposit of Rs 2,11,500 as unexplained money. After this Aggarwal knocked on the door of ITAT.

After going through all the facts and arguments, the tribunal said, “We are of the view that the amount deposited by the assessee during demonetisation cannot be treated as his income. Therefore, the appeal of the assessee is correct.

The tribunal also said that the contribution of housewives in the family is incomparable.

Giving exemption to women who deposited up to Rs 2.50 lakh during demonetisation, ITAT said, “We clarify that this decision has been taken against the action taken by housewives to deposit cash up to the limit of Rs 2.5 lakh during Demonetization Scheme 2016. An example can be taken in relation to this.

This decision is being considered as an important decision for the housewives. All the women representatives have welcomed this decision.

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