Case Law Details
Sanjay Jain Vs ITO (ITAT Delhi)
The issue under consideration is whether the addition made under Section 69A of the Act to the income of the assessee is tenable?
ITAT Delhi ruling on cash deposit issue. Assessing Section 69A addition to the assessee’s income. Understanding the ITAT judgment and its impact.
It is the submission of the ld. Counsel for the assessee that the assessee has shown a GP rate of 20.89% and, therefore, the same rate should be applied to the entire deposits since such deposits are nothing, but, suppressed turnover. It is the alternate contention of the ld. Counsel for the assessee that only the peak credit should be added and not the entire deposits in the bank account since the corresponding withdrawals from the said bank account have not been considered. A perusal of the deposit and withdrawals in the said bank account filed by the assessee shows that there are systematic deposits as well as withdrawals. The assessee is engaged in the business of readymade garments, therefore, taxing only the deposits without giving corresponding credits to the withdrawals, in opinion of ITAT, will be not justified in the instant case especially when the assessee is a small trader. Hence appeal is partly allowed.
FULL TEXT OF THE ITAT JUDGEMENT
Please become a Premium member. If you are already a Premium member, login here to access the full content.