Gupta Subhash & Sons HUF Vs ITO (ITAT Delhi)
ITAT Delhi held that addition towards unexplained cash deposit under section 69A of the Income Tax Act is not sustainable since the same is out of the cash sales and both cash book and books of account justifies the same. Accordingly, appeal is allowed.
Facts- During scrutiny assessment, AO observed that as per the information available with the Department, the assessee has deposited cash of Rs.75,00,000/- in its bank account maintained with HDFC Bank. However, inspite of repeated directions, no satisfactory reply with nature and source of cash deposited as well as justification with regard to unusual drastically rise in the cash deposit was received from the assessee. He further observed that during the same period in FY 2015-16, cash deposit was made by the assessee of Rs.22,38,000/-. Based on the above information, the AO proceeded to make the difference of cash deposit made by the assessee during the year by reducing the amount of cash deposit made by the AO in the previous financial year and proceeded to make the addition u/s 69A of the Act to the extent of Rs.52,62,000/-.
CIT(A) sustained the addition. Being aggrieved, the present appeal is filed.
