Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (3) TMI 325 - ITAT DELHIUnexplained source of cash deposit - Held that:- Assessee was dealing in its whole business on cash basis. The assessee has filed profit and loss account and balance sheet of the business which has been accepted by the AO as is evident from the assessment order. The assessee does not maintain any current account and deposits all the receipts in the saving bank account. In this case the assessee has advanced fresh loan of ₹ 9,50,000 to three parties and assessee’s source of deposit is mainly the withdrawals of ₹ 1,66,500/- and collection from Debtors of ₹ 10,87,362/- from his business, as is evident from the fact that opening debtors is of ₹ 2,79,166/- and total sales made during the year is ₹ 9,46,850/-. Out of this during the year assessee received amount of ₹ 10,87,362/- in cash and ₹ 1,33,221/- vide cheques. Thus find considerable cogency in the assessee’s contention that the cash received and withdrawals after making payment for expenses and creditors deposited in to the bank account and the same was used to advance the loan to the said parties. Hence, it is crystal clear that the payments are totally out of assessee’s business and the results have been accepted by the AO, as the business income has been assessed at ₹ 1,51,580/-, hence, the source of deposit has been explained by the Assessee to the AO and addition made on this account is not sustainable in the eyes of law, hence, the same needs to be deleted. - Decided in favour of assessee
|