Jagdish Prasad Vs ITO (ITAT Lucknow)
In the matter abovementioned ITAT deleted additions u/s 69A made on account of cash deposit during demonetization after considering the bank certificate which show actual amount of cash deposit.
Assessment was completed at Rs.8,79,916/- by making an addition of Rs. Rs.5,39,500/- u/s 69A on the ground that the aforesaid amount was deposited by the assessee during demonetization period. First appeal was dismissed by Addl/JCIT(A).
Before ITAT it was submitted on behalf of assessee that assessee submitted that amount of Rs.39,500/- was deposited only. which was available as cash in hand out of assessee’s business of sale of electrical and electronics goods. Out of Rs.5,39,500/-, i.e. Rs.5,00,000/- was deposited out of the assessee’s turnover of Rs.42,55,200/- which has been duly shown u/s 44AD in the ITR. Bank certificate was produced which show that cash amounting to Rs. 39,500/- deposit in demonetized currency. On the other hand, revenue relied on order passed by CIT(A) & AO.
After considering the submission of both the parties ITAT observed that assessee has shown turnover of Rs.42,55,200/- u/s 44AD and has shown income of Rs.3,22,850/- in the ITR. Addition made by AO is based only on doubt, surmises and guess work. As the assessee has opted for presumptive taxation u/s 44AD, assessee is not required to maintain regular books of account. The certificate issued by bank to the effect that only Rs.39,500/- was deposited by the assessee which was ignored by CIT (A). The mere fact that part of turnover was deposited in cash should not weigh so heavily in the minds of the authorities that it ignores material evidence placed before the authorities.
