Case Law Details
ITO Vs Zee Bangles Pvt Ltd (ITAT Mumbai)
ITAT Mumbai held that provision of Sec. 69A of the Income Tax Act cannot be applied in respect of cash deposited which have been duly recorded in the books of account and had already been declared income in the return of income filed by the assessee.
Facts- The assesse was engaged in the business of jewellery making and selling on both retail and wholesale basis. During the course of assessment proceedings the assessing officer pointed out that assesse company had deposited substantial cash in bank account during the demonetization period 09.09.2016 to 30.12.2016.
On query, the assessee explained that the amount of cash deposit made during the period 09.11.2016 to 30.12.2016 was out of sales made to various parties. The AO had not agreed with the submission of the assessee and observed that no genuine cash sale had taken place. Therefore, the assessing officer had treated the cash deposited of Rs.6,92,00,000/- as undisclosed out of books and added to the total income of the assessee u/s 69 of the Act.
CIT(A) allowed the appeal of the assessee. Being aggrieved, revenue has preferred the present appeal.
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