ITO Vs Genesis Computech Pvt. Ltd. (ITAT Kolkata)
ITAT Kolkata dismissed the appeal preferred by the revenue since tax effect is below the threshold specified by CBDT vide circular no. 5 of 2004 dated 15.03.2024 and also the case doesn’t fall under any exception as per CBDT circular.
Facts- During the assessment proceedings, the Assessing Officer made an addition to the total income amounting to ₹ 4,36,876/- primarily relating to unexplained cash deposit of ₹ 3,90,000/- made during the demonetization period and unexplained cash credit in bank extent of ₹ 46,113/-.
Dissatisfied with the addition made by AO, assessee went in appeal before CIT(A). CIT(A) allowed the appeal and directed AO to delete the addition made under Section 68 of the Act. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the appeal was filed by the Revenue does not fall under any exceptional clause as argued by Learned Departmental Representative, the case primarily involves on the addition made during the demonetization period and the Learned CIT(A) has rightly observed that the assessee had sufficient cash balance during the relevant financial year as evidences by the cash book. We further note that the Learned Assessing Officer made the addition based on assumption and conjecture without concrete evidence to support the claim cash deposit were unexplained. The Learned CIT(A) properly ex-amine the facts and found that the assessee had sufficient cash balance to explain the deposits. Therefore, the learned CIT(A) decision to delete the addition under Section 68 of the Act is well founded. Moreover, the tax effect in the present case is below threshold specified by the CBDT’s Circular and the case does not fall under any exceptional category. The Revenue appeal is thus not maintainable on this ground as well.
