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2019 (12) TMI 1257 - ITAT AMRITSARAddition on account of cash deposits in the personal saving bank account of the shareholder of the company - Addition u/s 2(22)(e) or 68 - HELD THAT: - We find that it is not the case of the AO that cash deposits in saving bank account with Axis Bank has been not made out of cash in hand balance available with M/s. Orthonovo Joint & Trauma Hospital Pvt. Ltd. in which the assessee was director. We find that the cash book of the company is reflecting day to day cash receipts, out of said cash balance, the cash deposits were made in the impugned bank account. This view is also supported by the facts that the AO has without prejudice, also observed that the addition should be considered u/s. 2(22)(e) of the Act as the assessee has received cash loan from the company in which he had substantial interest and shareholding CIT (A) was not justified in sustaining the addition, when the AO was not certain under which head the addition should be made. This means to the AO was some what agreed that cash deposits in said bank account are out of cash in hand available with the said company. AO did accept that the bank opened in pertained to M/s. Orthonovo Joint & Trauma Hospital Pvt. Ltd. On careful consideration of facts, we are of the view that cash deposits in bank account are out of cash in hand belonging to M/s. Orthonovo Joint & Trauma Hospital Pvt. Ltd. hence, source of cash deposits are duly explained and same pertained to the company as as the source of cash deposits are from cash in hand of the impugned company.in such circumstances, we are of the view that the AO was not justified in making addition without bringing on record to establish that there was no cash in hand balance was available with said company. Therefore, having not done so the AO cannot added the sum belonging to company. Therefore, we hold that the addition made by the AO and sustained by the CIT (A) by invoking section 69 is not tenable in law, hence, same is deleted. - Decided in favour of assessee.
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