INCOME TAX ACT, 1961

Section 69

Income from undisclosed sources - Addition under section 69 - Cash deposits in bank account - Correctness of cash book not disputed

AO totaled the cash deposits in various bank accounts at Rs. 63,63,500.00 and added the same in the income of the assessee. The main argument of the AO while adding these amount was that assessee had shown the total medical receipts amounting to Rs. 18,22,680 and after deducting the expenses according to him the net profit comes to Rs. 6,33,343 and that these deposits cannot be made out of the income of the year, hence these deposited amounts were income from undisclosed source. CIT(A) deleted the addition.Held: Admittedly, the AO had confirmed that the amount deposited in the bank were found duly recorded in the cash book. The revenue before Tribunal during the course of arguments and also in the written submissions have not disputed the correctness of the cashbook. Further, it was also not the case of the AO that the cash book maintained by the assessee was incorrect. In view of the above. once the assessee was able to explain the source of deposits in the bank based on the cash book, which were admittedly not disputed and rejected by the AO, therefore, no addition on the basis of the bank deposit can be made out and accordingly, the ground raised by the revenue was liable to be dismissed.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

INCOME TAX ACT, 1961

Section 143(3)

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