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2022 (6) TMI 151 - AT - Income TaxAddition u/s 68 - unexplained cash deposit - deposits during demonetization period - unexplained amount collected by the assessee in the form of Specified Bank Notes from is customers by way of deposits during demonetization period - HELD THAT:- In the instant case, there is no dispute with regard to the fact that sources for making deposit by the assessee into its bank account are the money collected from its members. AO is also not doubting that all the SBNs have been collected by the assessee from its members. Accordingly, following the above said decision [2022 (2) TMI 1243 - ITAT BANGALORE] we hold that the addition made u/s 68 of the Act is not justified. A.R also submitted that the SBNs have been collected by the assessee prior to the appointed date of 31.12.2016, i.e., only from 31.12.2016, the assessee is precluded from accepting SBNs from its members. In this view of the matter, the reasoning relating to contravention of rules of RBI also fails. Accordingly, we set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the impugned disallowance.- Appeal of assessee allowed.
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