Daxaben Ashokkumar Dattani Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that addition under section 69A towards unexplained cash deposit cannot be sustained since it is reasonably explained that deposit is out of its business proceeds. Accordingly, order of CIT(A) set aside and appeal of assessee allowed.
Facts- The present appeal has been filed by the assessee against the order of Commissioner of Income Tax (Appeals). The solitary issue in the present appeal relates to addition made to the income of the assessee on account of cash found deposited in the bank account amounting to Rs.53,27,000/-allegedly remaining unexplained.
Conclusion- Held that the assesse had reasonably justified the cash available with her for deposit in the bank account in the entire year as out of its business proceeds, having not incurred any expense in cash. The onus on the assessee to explain the source of cash deposited in bank, we hold, was duly discharged and there was no reason absolutely for making any addition of the cash deposit as being out of unexplained sources. Thus, we see no reason to confirm the order of the Ld. CIT(A) upholding the addition made by the AO of the cash deposited in the bank account of the assessee amounting to Rs.53,27,000/-. The impugned addition made is accordingly directed to be deleted.
