Balsons Jewellers Vs ITO (ITAT Delhi)
ITAT Delhi held that addition under section 69A of the Income Tax Act towards cash deposits as unexplained money cannot be sustained since the cash deposits is already recorded in books of accounts. Accordingly, appeal allowed.
Facts- The assessee is a firm engaged in the business of jewelers. The assessment was taken up for scrutiny and in the course of assessment proceedings the assessee was required to explain the cash of Rs.58,50,000/-deposited into its account during demonetization period. AO treated the cash deposit as unexplained income of the assessee u/s 69A of the Act observing that the assessee has made sales mostly in cash in the month of October 2016 from trading of jewellery and cash was deposited in the month of November 2016 during demonetization period and not deposited the cash before the demonetization period and the assessee could not explain the source for cash deposits. CIT(A) sustained the addition made u/s 69A of the Act. Being aggrieved, the present appeal is filed.
Conclusion- The coordinate bench of the Delhi Tribunal in the case of Durga Fire Work vs. ITO held that when the cash deposits were recorded in the books of account and the books were audited, addition cannot be made u/s 69A of the Act
