ITO Vs Vasudev Hemrajani (ITAT Jaipur)
ITAT Jaipur held that addition under section 68 towards cash deposit in bank as unexplained cannot be sustained since source of cash deposited duly explained. Accordingly, addition of around Rs. 8.60 Crores deleted.
Facts- Revenue has preferred present appeal mainly contesting that CIT (A) has erred in deleting the addition made by the AO of Rs. 8,60,03,806/- u/s 68 of the Income Tax Act, 1961 cash deposited in assessee’s bank account during the year under consideration applying the provisions of section 115BBE of the Income Tax Act, 1961 ignoring the fact that the assessee couldn’t furnish copy of cash book and other relevant documentary evidences during assessment proceedings.
Conclusion- Held that the entire cash was deposited in the bank accounts regularly maintained by the assessee therefore under no circumstances such deposit could be held unexplained. Even otherwise the addition of cash deposits of Rs.8,60,03,806/-made u/s 68 by treating the same as unexplained cannot be made as the assessee has submitted the cash book all the three concerns and the cash so deposited into the bank account is duly reflected in the books of account. The assessee has explained the source of this cash deposit.
