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2020 (2) TMI 142 - AT - Income TaxAddition on the basis of the crediting of cash in the bank account - assessee having deposited the amount out of the sale proceeds of the closing stock held by him and out of cash in hand - HELD THAT:- Assessee has submitted to the AO that ₹ 8,77,100/- is the sale proceeds of the stock balance he was having as on 31.03.2009 and balance ₹ 1,22,900/- was deposited out of the cash balance available with him. In this regard, the assessee has also filed the balance sheet with the AO which he has filed along with the return of income for preceding assessment year. Further note that as per the balance sheet as on 31.03.2009 the assessee was having closing stock of ₹ 9,07,250/- and cash in hand of ₹ 2,30,127/-. Thus, the explanation of the assessee regarding this deposit of cash was correct. The Ld. CIT(A) was not justified in treating this explanation as contrary to the explanation given before her. The explanation given before AO as stated in the letter dated 23.11.2017 and the explanation given to the CIT(A) in its submissions is the same. The assessee having deposited the amount out of the sale proceeds of the closing stock held by him as on 31.03.2009 and out of the cash balance available with him as on 31.03.2009, there is no reason for sustaining this addition.
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