Addition u/s. 69A quashed as cash deposited was out of cash sales and was duly recorded in books

Gupta Subhash & Sons HUF Vs ITO (ITAT Delhi)

ITAT Delhi held that addition towards unexplained cash deposit under section 69A of the Income Tax Act is not sustainable since the same is out of the cash sales and both cash book and books of account justifies the same. Accordingly, appeal is allowed.

Facts- During scrutiny assessment, AO observed that as per the information available with the Department, the assessee has deposited cash of Rs.75,00,000/- in its bank account maintained with HDFC Bank. However, inspite of repeated directions, no satisfactory

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