Money deposits of as much as Rs 2.5 lakh by housewives submit demonetisation is not going to come beneath I-T scrutiny because the Revenue Tax Appellate Tribunal (ITAT) has held that such deposits can’t be handled as earnings of the assessee.
Ruling on an attraction filed by a person, the Agra bench of ITAT mentioned the order would act as a precedent for all comparable instances.
The appellant, a housewife Uma Agrawal of Gwalior, had declared complete earnings of Rs 1,30,810 in her earnings tax return filed for fiscal 2016-17. Nevertheless, submit demonetisation, the assessee deposited the Rs 2,11,500 money in her checking account.
The case was chosen for scrutiny evaluation, throughout which the assessee was requested to elucidate the money deposit of over Rs 2.11 lakh. The assessee had defined that she had collected/saved the above sum from her earlier saving, given by her husband, son, relations for herself and her household.
The CIT (Appeals) didn’t settle for the reason and confirmed the Assessing officer’s order treating the money deposit of Rs 2,11,500 as unexplained cash. Following this, the appellant approached the ITAT.
The Tribunal, after going via all of the information and arguments, mentioned “we’re of the opinion that the quantity deposited by the assessee through the demonetisation can’t be handled as earnings of the assessee. Therefore the attraction of the assessee is allowed.”
Observing that housewife’s contribution within the household is “immeasurable”, the Tribunal mentioned quoting an order by the Supreme Court docket, which talked about that, in India, practically 159.85 million girls acknowledged that ‘family work’ was their primary occupation in comparison with solely 5.79 million males, as per 2011 Census.
“Girls everywhere in the nation, had been accumulating money that that they had saved for themselves from family budgets, by haggling with vegetable sellers, tailors, grocers and various merchants…
“Years of stashing in no matter little money presents they acquired from relations throughout pageant occasions and years of tucking away the change they discovered within the pants that they washed each day, nevertheless, abruptly they have been left with no choice however to deposit the quantity within the denomination of Rs 500 and Rs 1000 notes within the banks on account of Demonetisation scheme 2016, (as) these notes have been no extra authorized tenders,” the tribunal added.
Exempting girls who deposited lower than Rs 2.50 lakh through the demonetisation interval, the ITAT mentioned “we could make clear that this choice could also be handled as precedent in respect to proceedings arising out of the money deposit made by the housewives through the demonetisation scheme 2016, solely as much as the restrict of Rs 2.5 lakhs solely.”
Often, ITAT ruling is binding on the applicant and the jurisdiction tax officer and is used as reference in comparable issues.
Put up demonetisation in November 2016, the earnings tax division had in 2017 mentioned no questions will likely be requested about money deposits of as much as Rs 2.5 lakh and solely these accounts will likely be probed that don’t match the tax returns.
(Solely the headline and movie of this report could have been reworked by the Enterprise Normal employees; the remainder of the content material is auto-generated from a syndicated feed.)
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