|The Tax Publishers2021 TaxPub(DT) 0262 (Bang-Trib)
INCOME TAX ACT, 1961
Section 143(3) Section 68
Same rejected books of accounts could not be relied upon for making another addition by alleging that cash deposit in the bank account of assessee was unexplained cash deposits.
Income from undisclosed sources - Addition under section 68 - Cash deposits in bank account - AO made addition based on books of account rejected under section 145(3)
AO rejected assessee's books and estimated income of assessee at Rs. 60 lakhs as against the declared business income of Rs. 31 lakhs supported by the audited accounts of the assessee. Also, AO relying on same books of account made another addition on account of unexplained cash deposits in bank account. Held: Same rejected books of accounts could not be relied upon for making addition by alleging that cash deposit in the bank account of assessee was unexplained cash deposits. Moreover, addition of Rs. 29 lakhs being the difference between the amount of Rs. 60 lakhs and Rs. 31 lakhs was also to be considered as available to explain source of cash deposit into bank. Under these facts, total cash deposits in bank account of assessee was explained and, therefore, no addition was called for.
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, BANGALORE BENCH
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