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2023 (8) TMI 1455 - ITAT DELHIAddition u/s 68 - assessee has failed to furnished any satisfactory explanation of the source of cash deposited during demonetization period - CIT(A) deleted addition - HELD THAT:- Since the assessee company, as per the AO is in the business of real estate, then the keeping cash on sites of construction and keeping main cash books in the central office is a normal practice to be adopted by such company therefore ignoring main cash book is a vital omission on the part of AO which was resulted into difference in the amount of cash deposit and cash balance only based on site cash books ignoring the main cash book. CIT(A) has relied on the judgment of Kulwant Rai [2007 (2) TMI 185 - DELHI HIGH COURT] and Jaya Aggarwal [2018 (3) TMI 1358 - DELHI HIGH COURT] observed that when the assessee has shown cash withdrawals during pre demonetization period more than the cash deposited during demonetization then the source cannot be disputed merely on the assumption that such withdrawn amount may have spent by the assessee for some other purpose without any adverse positive material showing such facts. Hon’ble jurisdictional High Court held that in absence of any material in support of the view that withdrawals were spent for some other purpose, the conclusion of Tribunal has to be held has right in treating the cash withdrawals from the bank as source of cash found. Thus, as we have noted above, the AO has ignored main cash book while disputing the source of cash and making addition and the ld. CIT(A) considered entire facts and circumstances in the right prospective, no valid reason to interfere with the findings arrived by the ld. CIT(A) - Decided against revenue.
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