Late Narayan Dattaraya Chaware Through Legal Heir Mrs usha Naryan Chaware Pune vs Income-Tax Officer, Ward 4(5), Pune

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, PUNE BEFORE SHRI R.S.

SYAL, VICE PRESIDENT आयकर अपील सं. /ITA No.377/PUN/2022 नधारण वष / Assessment Year : 2017-18 Mrs.

Usha Narayan Chaware, Legal heir of Late Narayan Dattatraya Chaware, Flat No.2, Sathe Apartments, 401, Shaniwar Peth, Kaksaheb Gadgil Road, Pune 411 030, Maharashtra PAN : ABUPC2604B Vs.

ITO, Ward-4(5), Pune Appellant Respondent आदेश / ORDER PER R.S.

SYAL, VP: This appeal by the assessee arises out of the order dated 15-12-2021 passed by the CIT(A) in National Faceless Appeal Centre, Delhi in relation to the assessment year 2017-18.

2.

The appeal is time barred by 94 days.

The assesee has filed a condonaton petition explaining the reasons.

I am satisfied with the reasons so stated.

The delay is, therefore, condoned and the appeal is admitted for disposal on merits.

Assessee by Shri Sunil Ganoo Revenue by Shri Ramnath P.

Murkunde Date of hearing 24-02-2023 Date of pronouncement 24-02-2023 ITA No.

377/PUN/2022 Mrs.Usha Narayan Chaware 2 3.

The only issue raised in this appeal is against the confirmation of addition of Rs.17.00 lakh made by the Assessing Officer (AO) towards cash deposited by the assessee in his bank account during demonetization period.

4.

Briefly stated, the facts of the case are that the assessee, before his death, was a retired Government servant at the material time.

During the course of assessment proceedings, the AO observed that the assessee deposited cash of Rs.17.00 lakh in his bank account on different dates during the demonetization period.

On being called upon to explain the source, the assessee submitted that he along with his brother, Shri Vilas Dattatraya Chaware, sold certain agricultural land for a sum of Rs.38.00 lakh on 12-04-2013.

The assessee’s share in such sale consideration was Rs.19.00 lakh.

It was stated that the cash was kept with his brother for purchase of another property in the nearby vicinity, but the transaction of new purchase could not materialize. terialize.

The AO called upon the assessee to furnish details of his monthly expenses which was duly furnished along with source thereof.

The AO refused to accept the source of cash deposit of Rs.17.00 lakh in bank account during demonetization period on the ground that the agricultural land was sold in 2013 and the cash was deposited in 2016.

He, therefore, made the addition of the said sum ITA No.

377/PUN/2022 Mrs.Usha Narayan Chaware 3 u/s.69A r.w.s.115BBE of the Act.

No relief was allowed by the CIT(A), against which the assessee has approached the Tribunal.

5.

Having heard both the sides and gone through the relevant material on record, it is found as an admitted position that the assessee did sell its ancestral agricultural land in the year 2013 for a sum of Rs.38.00 lakh along with his brother.

The assessee submitted before the AO that his share of cash of Rs.19.00 lakh was kept with his brother who was looking after the agricultural operations previously and both of them decided to purchase a new agricultural land in their joint name.

Unfortunately, the brother passed away in the month of June, 2016 and his sister in law handed over his share of cash in the months of August and September, 2016, which was deposited in the bank account during November, 2016.

The fact that the assessee along with his brother sold agricultural land for a sum of Rs.38.00 lakh has not been denied by the AO.

Once the availability of cash in hands was established and it was not shown by the AO that such cash was spent elsewhere, I am of the considered opinion that the explanation of the assessee as to its utilization has to be accepted.

Further, the assessee also explained his monthly domestic expenses ITA No.

377/PUN/2022 Mrs.Usha Narayan Chaware 4 and also the sources thereof, which was also disputed by the AO.

I, therefore, order to delete the addition.

6.

In the result, the appeal is allowed. s allowed.

Order pronounced in the Open Court on 24th February, 2023.

Sd/- (R.S.SYAL) VICE PRESIDENT पुणे Pune; दनांक Dated : 24th February, 2023 Satish आदेश क त ल प अे षत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2.  यथ / The Respondent; 3.

The Pr.

CIT concerned 4.

5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, SMC, Pune / DR, ITAT, Pune गाड फाईल / Guard file आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No.

377/PUN/2022 Mrs.Usha Narayan Chaware 5 Date 1.

Draft dictated on 24-02-2023 Sr.PS 2.

Draft placed before author 24-02-2023 Sr.PS 3.

Draft proposed & placed before the second member JM 4.

Draft discussed/approved by Second Member.

JM 5.

Approved Draft comes to the Sr.PS/PS Sr.PS 6.

Kept for pronouncement on Sr.PS 7.

Date of uploading order Sr.PS 8.

File sent to the Bench Clerk Sr.PS 9.

Date on which file goes to the Head Clerk 10.

Date on which file goes to the A.R.

11.

Date of dispatch of Order. *