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2021 (12) TMI 1201 - AT - Income TaxAddition being 40% of cash balance shown in the balance sheet as income of the assessee - HELD THAT:- Assessee is maintaining the books of accounts and the same were audited u/s. 44-AB - turnover of the assessee for the year under consideration as submitted by the assessee before the Ld. CIT(A) is at ₹ 2.5 crores and the major sales are cash sales only and obviously generates cash in hand. When the assessee has submitted the same before the A.O as well as Ld. CIT(A) they have not pointed out any defect in the books of accounts and only says that the cash in hand shown by the assessee is excessive. A.O without any basis, simply says that the cash in hand is excessive and therefore, estimated 40% of the cash in hand as an income and subsequently, partial relief granted by the Ld. CIT(A) and when the assessee is explaining in detail without considering the same estimation made by the A.O without giving any reasons, in my opinion, it is not correct. Even, the Ld. CIT(A) has granted partial relief without giving any reasons why entire addition cannot be deleted. Further, the Ld. CIT(A) also failed to consider the explanation of the assessee. In view of the above, the addition made by the A.O cannot be survived. Accordingly, the addition made by the A.O is deleted. - Decided in favour of assessee.
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