DCIT Vs Chiranjeet Kundu (ITAT Kolkata)
ITAT Kolkata held that addition under section 69A of the Income Tax Act towards unexplained cash deposits rightly deleted since it is already part of the turnover of the business. Accordingly, appeal of revenue dismissed.
Facts- AO has recorded a finding that there were large sums of money deposited as cash in the bank accounts during demonetization period. It is recorded in the assessment order that the said cash deposits could not be verified in the absence of books of accounts etc. which the assessee was required to produce before AO. Thereafter, AO proceeded to add Rs. 2,27,98,730/-u/s 69A of the Act.
CIT(A) deleted the impugned addition. Being aggrieved, the present appeal is filed by revenue.
Conclusion- Held that the findings of the Ld. CIT(A) are relevant in as much as the issue has been placed in perspective. It is seen that the Ld. AO went ahead in making the impugned addition, overlooking the fact that the allegedly doubtful receipts were very much part of the turnover of business and had been duly disclosed in the return of income. Furthermore, it is clear that the turnover etc. has not been doubted by the Ld. AO. All in all, the findings of Ld. CIT(A) are worth upholding and the addition made u/s 69A of the Act by the Ld. AO cannot be sustained. Accordingly, it is held the impugned addition has been rightly directed to be deleted.
