Kirit Kumar Patel Vs ITO (ITAT Hyderabad)
Both Additions u/s 69A Deleted: Cash Deposit from Pre-Demonetisation Balance & Flat Purchase Through Book-Entry Proven
Hyderabad Tribunal examined two additions made u/s 69A+Rs.14,00,000 deposited during demonetisation & Rs.79,60,000 towards flat purchase. Assessee demonstrated that his proprietorship accounts for AY 2016–17 were duly audited before demonetisation, reflecting a genuine cash-in-hand of Rs.20,94,588 as on 31.03.2016, much prior to 08.11.2016. Personal day-to-day cash statement showed continued drawdown leading to Rs.14,53,456 available on the date of demonetisation, out of which Rs.14,00,000 was deposited. Revenue brought no evidence to dispute the audited cash balance or to show any inflation. Tribunal held that mere absence of a full-year cash book cannot defeat credible contemporaneous evidence; hence addition of Rs.14,00,000 was unsustainable.
On flat purchase, assessee produced sale deed & audited accounts of M/s Niti Enterprises, of which he is a partner. The partnership firm recorded Rs.79,60,000 as receivable from the assessee; correspondingly, assessee’s balance sheet recorded the same amount as payable to the firm. Tribunal held that consideration was fully accounted through book adjustment, not through unrecorded payment. Registered deed’s recital of “receipt of consideration” only reflects the accounted entry. With both parties’ books reflecting identical entries & no contrary evidence from Revenue, the presumption of unexplained money u/s 69A had no basis. Tribunal deleted both additions. Appeal allowed in full.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
