| The Tax Publishers2020 TaxPub(DT) 4808 (Ctk-Trib) INCOME TAX ACT, 1961
Section 69
Since assessee had shown cash receipts of Rs. 3,43,200 and opening balance of Rs. 1,97,550 in hand, he had duly proved the cash deposit of Rs. 4,00,000 and, accordingly addition made by AO without considering the same as unexplained deposit was not justified.
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Income from undisclosed sources - Addition under section 69 - Bank deposit -
Assessee deposited Rs. 4,00,000 in two bank accounts. AO made addition of same as unexplained deposit on the ground that assessee did not have enough cash to deposit Rs. 4,00,000. Held: Cash receipts of Rs. 3,43,200 had been reflected in the ledger account and in cash book, there was opening balance of Rs. 1,97,550. If these opening balance and cash receipts are taken into consideration, then, the assessee had sufficient funds in its hands to deposit cash of Rs. 4,00,000 in two bank accounts. AO had disbelieved the cash book as daily balancing was not done without considering the cash book and ledger account. Since the assessee had shown cash receipts and opening balance in hand, assessee has duly proved the cash deposit of Rs. 4,00,000 and, accordingly addition made was required to be deleted.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2014-2015
INCOME TAX ACT, 1961
Section 69
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