Ashoka Enterprises Vs ACIT (ITAT Visakhapatnam)
ITAT Visakhapatnam held that addition under section 69A r.w.s 115BBE of the Income Tax Act unjustified as cash deposits are made out of sale proceeds and the source of cash deposits duly explained.
Facts- The case of the assessee was selected for complete scrutiny. During the scrutiny proceedings, AO noticed that there are certain cash deposits in the assessee’s bank accounts. Accordingly, a show cause notice dated 04/12/2019 was issued to the assessee by way of email. However, there was no response from the assessee. Therefore, AO treated the cash deposits of Rs. 7,99,698/- made in the HDFC Bank account as unexplained money U/s. 69A r.w.s 115BBE of the Act and added the same to the total income of the assessee. AO also initiated the penalty proceedings U/s. 270A of the Act for under reporting of the income. Thus, AO determined the total income at Rs. 26,45,010/- which includes the addition of Rs. 7,99,698/- U/s. 69A r.w.s 115 of the Act and passed the assessment order U/s. 143(3), dated 07/12/20 19.
CIT(A)-NFAC dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the cash deposits are made out of the sale proceeds of the assessee and in my opinion the assessee has properly explained the source of the cash deposits along with documentary evidence. Therefore, I hereby direct the Ld. AO to delete the addition made U/s. 69A r.w.s 1 15BBE of the Act. It is ordered accordingly.
