Dipak Balubhai Patel (HUF) Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that invocation of provisions of section 69A of the Income Tax Act unjustified as cash deposits during demonetization period duly recorded in books of account and source of cash deposits duly maintained.
Facts- The assessee is a Karta of HUF. During scrutiny assessment, AO found that the assessee in his Account with Bank of Baroda deposited a sum of Rs.10,75,000/- during demonetization period. AO rejected the Books of Accounts by stating on the verification of the Return of Income filed for the A.Y. 2016-17, assessee has shown Closing Cash on hand Zero and in the Cash Book of A.Y. 2017-18, assessee has shown Opening Balance to the tune of Rs.10,09,933/- which is not justifiable and therefore made addition as unexplained money u/s. 69A of the Act and tax the same u/s. 115BBE of the Act.
CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.
Conclusion- Held that in the present case, the assessee has recorded the above cash deposits in his books of accounts and source of cash deposits during demonetization period were also been maintained by the assessee. Therefore in our considered view, the A.O. is not correct invoking provisions of Section 69A of the Act and charging tax u/s. 115BBE of the Act. Thus the addition made by the Assessing Officer is liable to be deleted.
