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2020 (1) TMI 1354 - AT - Income TaxUnexplained cash deposited in the bank account - HELD THAT:- Addition sustained by the CIT(A) deserves to be deleted and therefore the question of allowing telescoping benefit does not arise for consideration at all. As rightly submitted by the learned counsel for Assessee, the AO having accepted the correctness of the cash book in paragraph-6 of his remand report was not justified in expressing some doubts on the genuineness of the cash book maintained by the Assessee. As argued by him, the fact that there was low cash balance during the opening and closing days of the financial year and maintenance of huge balance in a particular period cannot be the basis to doubt the genuineness of the cash book. Cash was withdrawn from bank despite cash balances being available in the cash book, cannot be the basis to doubt the genuineness of the cash book. The presence of sundry creditors and the fact that the Assessee could have discharged sundry creditors instead of having cash in hand cannot also be the basis to doubt the genuineness of the cash availability as per cash book. Therefore the addition deserves to be deleted as the source of funds for cash deposit in the bank account stands duly explained and therefore the addition sustained by the CIT(A) deserves to be deleted and is hereby directed to be deleted. - Decided in favour of assessee.
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