Jatin Arora Vs ITO (ITAT Delhi)
ITAT Delhi held that addition under section 68 of the Income Tax Act towards unexplained cash credit cannot be sustained as cash deposit already included in turnover declared by the assessee in return of income. Accordingly, addition is directed to be deleted.
Facts- The assessee maintains three accounts in HDFC Bank, Kalka Ji, in which assessee had deposited a sum of Rs. 49,88,748/- in three accounts. It is observed in the assessment order that amounts exceeds the amount mention in the reason since the information passed was cash deposit of Rs. 2,00,000/- and above includes every cash deposits and no supportive evidence has been filed by the assessee and assessee has returned the income u/s 44AD and has not given any detail of purchases and also not given the any basis of sale of Rs. 55,49,170/-.
It was noticed that the assessee did not filed return of income voluntarily u/s 139(1) of the Act and has taken recourse to the provision of section 44AD to avoid paying higher tax by hiding under the provisions of section 44AD.
On the conclusion of the assessment proceedings, AO treated amount of Rs. 49,88,748/-, as income of the assessee under the head other sources having recourse to section 68 of the Act. CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
