DCIT Vs Ingeneric Technologies Solutions Private Limited (ITAT Hyderabad)
ITAT Hyderabad held that reasoning given by CIT(A) for deletion of addition made u/s. 69A of the Income Tax Act by Assessing Officer towards cash payment is contrary to material on record and cannot be accepted.
Facts- The case of the assessee was selected for scrutiny and during the course of assessment proceedings, AO noticed that during the investigation carried-out, it was noticed from the HDFC Bank account of the assessee that, there are deposits to the tune of Rs.3.63 crores by way of cheque/RTGS and Rs.1.40 crores by cash.
AO after considering relevant submissions of the appellant company issued final show cause notice and called-upon the assessee to file relevant evidences for cash deposit into bank account and also to explain the transactions with M/s. Analogics Tech India. AO after considering the relevant submissions of the appellant company and also taken note of explanation furnished by the appellant company to explain source for cash deposit observed that, although, the appellant company claimed to have received cash on sale of scrap, but, could not file relevant evidences including the details of tax collected at source on sale of scrap and returns filed in Form no.27EQ to report the said transaction.
