Hiren Dasani (Legal Heir) Tapulal Nathalal Dasani Vs ITO (ITAT Rajkot)
ITAT Rajkot held that addition towards unexplained cash deposit under section 69A of the Income Tax Act not sustained since assessee has adequate evidence supporting its claim of cash deposits. Accordingly, appeal allowed.
Facts- The assessee is engaged in a retail business. AO held that an amount of Rs. 22,78,500/-, deposited in the bank by the assessee remains unexplained, therefore, assessing officer added the same amount to the total income of the assessee u/s 69A of the Act.
CIT(A) confirmed the addition. Being aggrieved, the present appeal is filed.
Conclusion- Held that assessee is in retail business where only cash is received by the assessee from its customers. Therefore, assessee has deposited cash in the bank account not only in this year, but in previous years and subsequent years also. The assessee also deposited cash in bank account before and after the demonetization period, in the same pattern, hence cash deposit in the bank account during the year under consideration should not be doubted. We do not find exceptional or abnormal cash deposit in the bank account. We also find that assessee has furnished plethora of documents and evidences before the assessing officer as well as before the ld. CIT(A), to prove genuineness of the cash deposit in the bank account, which were not appreciated by both the lower authorities. We note that assessing officer has not refuted or discredited these evidences and documents. The assessing officer does not mention why he is not accepting these evidences. On the contrary, the assessing officer has just brushed aside these evidences without even a word on why they are not acceptable. It is a well settled Law that when an assessee has all the possible evidence in support of its claim, they cannot be brushed aside based on surmises. Hence, we are not inclined to accept the contention of the Assessing Officer in any manner and hence the addition so made is deleted. Hence this ground of the assessee is allowed.
