Gurram Naveen Vs ITO (ITAT Hyderabad)
ITAT Hyderabad Deletes Sec.69A Addition: Liquor Business Receivables Accepted as Genuine Source of Bank Deposits
In this appeal, Assessee challenged the sustaining of addition of Rs.12,21,810/- made by the AO u/s 69A on account of bank deposits for AY 2019-20. Assessee had not filed a return u/s 139 & subsequently filed a return in response to notice u/s 148 declaring income of Rs.2,17,310/-, including income declared u/s 44AD. AO noticed total deposits of Rs.12.21 lakhs—of which Rs.10 lakhs were cash deposits—in the SBI account & treated them as unexplained u/s 69A, along with an addition of Rs.1,18,820/- u/s 69C for credit card payments. CIT(A) deleted the 69C addition but sustained the 69A addition.
Before Tribunal, Assessee asserted that he was earlier engaged in retail liquor trading & that deposits represented realization of outstanding receivables from the liquor business. Tribunal examined the assessment order for AY 2017-18 placed in the paper book, where the AO himself had clearly acknowledged that Assessee was engaged in retail liquor trading. The license fee payment documents further confirmed the existence of such business activity. Tribunal also examined the audited balance sheet as on 31.03.2018, which disclosed receivables of Rs.15 lakhs from the liquor business. The financials, assessment order & license documents were all placed before lower authorities & their genuineness was never controverted by AO or CIT(A).
