Case Law Details
ITO Vs Siddi Vinayaka Auto Mobiles (ITAT Visakhapatnam)
Mere typographical error of the account number of the bank account does not mean that the assessee has not disclosed proper information about the bank account details. Addition u/s 69A unsustainable
Facts- The assessee is a dealer in automobiles. The assessee made substantial cash deposits during the demonetization period and subsequently a notice u/s. 142(1) was issued. Assessee didn’t responded. Accordingly, AO based on cash deposits assessed that the cash deposits are unexplained u/s. 69A of the and completed the assessment. AO also scrutinized Form 26AS and added an income of Rs. 1,24,362/- being amounts received from various parties. Since the assessee did not submit any details, AO passed the order U/s. 144 of the Act. CIT (A) deleted the additions. Being aggrieved, revenue preferred the present appeal.
Conclusion – We find merit in the arguments of the Ld. AR that the cash deposits are made out of the cash sales of the assessee and have been duly recorded in the books of account and reflected in the P & L Account of the assessee submitted before the Ld. Revenue Authorities. We also find merit in the arguments of the Ld. AR that considering the peculiar circumstances to this business cash being received by the dealer in automobiles for making payments to various authorities such as registration charges, insurance, life tax etc., The cash is collected from the customers as reimbursements and hence it does not form part of the revenue of the assessee.
We also note that from the paper book submitted by the Ld. AR that the Account Number has been typographically wrongly mentioned in the Note-9 in Schedule to Balance Sheet as on 31/3/2017 appended to financial statements, but the balances are properly disclosed in the books of accounts thus, mere a typographical error of the account number of the bank account does not mean that the assessee has not disclosed proper information about the bank account details. In view of the above facts, we find no infirmity in the order of the Ld. CIT(A) and hence no interference is required.
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