Cash Deposits from Car Booking Advances Explained: ITAT Deletes ₹27.40 Lakh Addition u/s 69A

Magnus Cars Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal, Mumbai Bench, in Magnus Cars vs ITO, deleted the addition of ₹27.40 lakh made under Section 69A, holding that cash deposits were duly explained as advances received from customers for booking motor vehicles. The assessee, a partnership firm engaged in car dealing, had deposited ₹43.50 lakh in cash across bank accounts. The Assessing Officer treated a major portion as unexplained money on the ground that some customers did not respond to notices, despite partial acceptance of certain deposits. The CIT(A) granted limited rel...