DCIT Vs Bajla Motors Private Limited (ITAT Kolkata)
ITAT Kolkata dismissed Revenue’s appeal against deletion of addition of ₹6.52 crore made u/s 68 towards cash deposits in assessee’s bank account. AO alleged unexplained cash deposits without demonstrating how the impugned figure was arrived at, despite accepting audited books of account & not invoking section 145(3).
CIT(A) recorded that cash deposits were fully explained by realization of opening debtors of about ₹4.96 crore, cash realization from current year sales of about ₹4.08 crore & opening cash in hand of about ₹37.61 lakh, all duly reflected in audited books & cash book.
Tribunal noted that cash availability of about ₹9.77 crore stood substantiated from books which were neither rejected nor disturbed by AO. Once audited books show sufficient cash availability, addition u/s 68 cannot survive merely on suspicion. Reliance placed on Lavanya Land Pvt. Ltd. (397 ITR 246) (Bom) & CIT v. Smt. Jamnadevi Agrawal (328 ITR 412) (Del). Finding no infirmity in CIT(A)’s order, Tribunal upheld deletion of addition & dismissed Revenue’s appeal. Consequentially, assessee’s cross-objection was also dismissed as infructuous.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The revenue has filed appeal against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 17.04.2025 for the assessment year 2018-2019. The assessee has also filed cross objection in revenue’s appeal.
