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| The Tax Publishers2019 TaxPub(DT) 7897 (Kol-Trib) INCOME TAX ACT, 1961
Section 68
On examination of cash flow statement for the year under consideration, as also for earlier two years and cross verifying it with entries in bank statements, it was evident that entries were recorded in disclosed bank accounts of assessee which showed that sufficient cash withdrawals were made by assessee from his bank account to cover impugned cash deposit and these deposits were made out of cash balance brought forward from earlier year. Accordingly, addition made by AO could not be sustained.
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Income from undisclosed sources - Addition under section 68 - Cash deposits in bank account held as unexplained - Assessee made deposit out of cash balance brought forward from earlier year
AO noticed cash deposit in assessee's bank account and treated the same as unexplained credit under section 68 on the ground that cash deposits remain unsubstantiated by assessee by filing neither any evidence nor wealth tax return in respect of source of cash deposit. Held: On examination of cash flow statement for the year under consideration, as also for earlier two years and cross verifying it with entries in bank statements, it was evident that entries were recorded in disclosed bank accounts of assessee which showed that sufficient cash withdrawals were made by assessee from his bank account to cover impugned cash deposit and these deposits were made out of cash balance brought forward from earlier year. Accordingly, addition made by AO could not be sustained.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 17(3)(ii)
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