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2022 (9) TMI 103 - AT - Income TaxAddition u/s 69A - Unexplained cash deposited in Bank account - Cash deposited by the assessee during the demonetisation period - assessee argued that deposits was out of withdrawals made earlier from the very same bank account - HELD THAT:- Amount withdrawn by the assessee was much more than the amount deposited in the very same bank account due to demonetisation - in the present case, the Revenue has not brought anything on record to show that the cash which was withdrawn by the assessee was already utilised for any other purpose. Surprisingly, the learned CIT(A) has also doubted the reason for re-depositing the cash, even during the demonetisation period. Revenue merely presumed that the cash withdrawn by the assessee from 28/07/2016 till 28/10/2016 was utilised by the assessee, without bringing anything on record. We find no reason to sustain the addition made by the lower authorities, particularly when both cash withdrawal and deposit are duly substantiated from the bank statement of the very same branch. Accordingly, we direct the AO to delete the addition made under section 69A - Ground No. 1 raised in assessee's appeal is allowed. Addition on account of cash deposited in the bank account of the partnership firm - unexplained money of the assessee - HELD THAT:- In the present case, nothing has been brought on record by the Revenue to support the above presumption. There is also no examination into the financials and business of the firm. Nor the statement of any other partner has been recorded, which could support the presumption reached by the Revenue. As it is pertinent to note that the transaction of cash deposit is made in the bank account of the firm, which is undoubtedly a separately assessed entity and also file its return of income. Thus, the aforesaid transaction of cash deposit was required to be examined in the hands of the firm rather than the assessee, which was one of the partners in the said firm. It is not the case of Revenue that in the assessment of firm it has been found that the cash belongs to the assessee. Therefore, in view of the above, we find no reason to sustain the addition in the hands of assessee on the basis of cash deposited in the bank account of the firm, which is a separate assessable entity. Accordingly, we direct the AO to delete the addition made under section 69A - Ground No. 2, raised in assessee's appeal is allowed.
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