Kamlesh Kampani Vs ITO (ITAT Delhi)
In the case abovementioned ITAT Delhi deleted addition after considering that the same was made by rejecting cash book and cash flow chart without bringing any new material on record.
Assessee was engaged in the business of trading of cloth/fabrics/textiles who his return for AY 2017-18 declaring total income of Rs. 4,30,970/-. On perusal of the ITR and bank statement of the assessee, the AO observed the assessee had made cash deposits amounting to Rs. 44,50,000/- in his bank account maintained with Axis bank Ltd during demonetization period (09/11/2016 to 30/12/2016). AO noted that no cash withdrawals were reflected up to 08/11/2016. AO completed the assessment by making an addition of Rs. 44,50,000/- u/s 69A which was confirmed by the CIT (A).
On appeal before ITAT it was submitted on behalf of the assessee that cash deposit which are duly disclosed and recorded in books and discarded disclosed cash sales forming part of cash in handout of books without rejecting such audited books of accounts, which is based on surmises and conjectures and without appreciating the correct facts of the case. Revenue supported orders of authorities below.
Finally ITAT concluded that addition of Rs.44,50,000/- was explained before AO in assessment as part of cash sales in cash book and cash summary flow chart. Cash flow statement and cash book were rejected by AO without bringing on record any material to show any other utilization of such cash available in hands of assessee. Both the revenue authorities have accepted the books of accounts, book results could not be disturbed once it is admitted that cash sales are recorded in books and forming part of turnover of the business. The books have not been rejected and no defect has been pointed out by the revenue authorities.
