Mohit Sukhija Vs NFA (ITAT Delhi)
ITAT Delhi held that addition under section 69A of the Income Tax Act towards cash deposited during demonetization cannot be sustained as source of cash deposited is cash sales and the same is already offered to tax. Accordingly, the appeal is allowed and addition is deleted.
Facts- The case of the assessee was reopened as it was noted that assessee has deposited cash of INR 14, 92,500/- during demonetization period. After considering the submission, AO made addition of INR 14,92,500/- under section 69A towards unexplained money being deposited during demonetization period.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that assessee has already included the entire cash sales in the total sales and the profits have been derived which was offered for tax, thus taxing the same income twice once in the sales and other when the sale consideration was realised and deposited in the bank account which is doubted on conjectures and surmises. Thus, the source of cash deposited as out of the cash sales should not be doubted without bringing on record any contrary material. Thus, we hereby delete the addition of Rs. 14,92,500/- made u/s 69A of the Act towards cash deposited in the bank account during demonetization period.
