Post-demonetization cash deposits up to Rs 2.5 lakh by housewives will not come under the scanner as the Income Tax Appellate Tribunal (ITAT) has said that such deposits cannot be treated as income.
What is the whole matter?
Giving its verdict on the petition filed by a person, the Agra bench of ITAT said that this order will be treated as a precedent for all such cases. Uma Agarwal, a housewife from Gwalior, had 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 post demonetization. The Income Tax Department took up the matter for investigation and the assessee was asked to explain the excess cash deposit amounting to Rs 2.11 lakh.
Aggarwal told that from the amount given by her husband, son, relatives for the family, she had deposited the above amount as savings. 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.
The contribution of housewives in the family is incomparable
After going through all the facts and arguments, the tribunal said, "We are of the view that the amount deposited by the assessee during demonetization 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 demonetization, ITAT said, "We clarify that this decision is to be taken by housewives during demonetization scheme, 2016 with regard to action taken on account of cash deposits up to the limit of Rs 2.5 lakh by housewives". can be taken as an example.'