No Earnings Tax Scrutiny on Money Deposits As much as Rs 2.5 Lakh by Housewives Put up Demonetisation: ITAT

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Money deposits of as much as Rs 2.5 lakh by housewives put up demonetisation is not going to come below I-T scrutiny because the Earnings 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 stated the order would act as a precedent for all related circumstances.

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, put up 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 by way of all of the details and arguments, stated “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 stated quoting an order by the Supreme Courtroom, which talked about that, in India, almost 159.85 million girls said that ‘family work’ was their essential occupation in comparison with solely 5.79 million males, as per 2011 Census.

“Girls all around 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 obtained from relations throughout competition occasions and years of tucking away the change they discovered within the pants that they washed day-after-day, nonetheless, all of the sudden 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 stated “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 related issues. Put up demonetisation in November 2016, the earnings tax division had in 2017 stated no questions will probably be requested about money deposits of as much as Rs 2.5 lakh and solely these accounts will probably be probed that don’t match the tax returns.

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