No addition u/s 69 of unexplained cash deposits as same was based on mere suspicion

Tirupati Jewels Vs ITO (ITAT Delhi)

Conclusion: Addition of Rs. 2.25 crore made by AO against assessee for unexplained cash deposits was deleted as assessee had discharged the onus and prove the genuineness of the transaction and addition was based on mere suspicion of AO.

Held: Assessee-firm was engaged in trading gold, silver, and diamond jewelry, filed its income tax return for the 2017-18 assessment year, declaring an income of Rs. 4.5 lakh. Subsequently, tax authorities flagged the firm for scrutiny due to cash deposits totaling Rs. 2.2

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