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2019 (6) TMI 300 - AT - Income TaxAddition on account of cash in hand - cash deposit in demonetization period - assessee declared return of income u/s 44AD - A.O. adopted sales receipts of ₹ 15 lakhs to estimate the income of assessee u/s 68 - CIT(A) restricted the addition of ₹ 11,22,090/- i.e., to the extent of cash in hand - HELD THAT:- There was no justification for the CIT(A) to pick-up the figure of ₹ 11,22,090/- for the purpose of making the addition on the basis of estimated balance-sheet filed at assessment stage. No evidence has been brought on record as to how the assessee maintained books of account in assessment year under appeal. A.O. has specifically noted that case was selected for scrutiny because assessee had deposited cash in his three Bank Accounts, but, no addition have been made on account of such amount deposited in the Bank Accounts. There was thus, no basis for the authorities below to make any addition against the assessee. The explanation of assessee has not been found to be false. Assessee, during the course of arguments rightly contended that assessee started retail business on cloth after his retirement. Since assessee is involved in small business activity and filed return of income under presumptive provisions u/s 44AD, there was no justification to consider the sales of assessee to be bogus or to make addition of cash in hand as per details submitted by the assessee because A.O. did not bring any sufficient evidence on record to justify the addition. - Decided in favour of assessee.
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