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2023 (2) TMI 54 - AT - Income TaxAddition u/s 68 - Addition of agricultural income as unexplained cash credit - main grievance of the lower authorities in the instant case is that the agricultural income is earned by the assessee in the distant location at Beed whereas the cash deposits were made by the assessee in a bank account maintained at Dadar - HELD THAT:- It is not in dispute that assessee had furnished entire cash book containing the cash inflows from various sources and cash outflows. Hence, what is to be seen is availability of positive cash balance with the assessee on each date of making cash deposits. In the instant case, the same has been duly complied with by the assessee as she is having sufficient cash balances in her books to make cash deposits in the bank account. It is not the case of the Revenue that the agricultural income earned by the assessee together with dairy receipts in cash were used by the assessee for some other expenses and the same is not available with her as cash source. Once the nature and source of cash deposits made in the bank account had been duly explained by the assessee with cogent evidences, there cannot be any addition u/s.68 of the Act as unexplained cash credit - no hesitation to direct the ld. AO to delete addition made - Decided in favour of assessee. Addition on account of gift received by the assessee from HUF by treating the same as undisclosed income - HELD THAT:- It is not in dispute that money has been received by the assessee from HUF as gift. In any case, the same would be exempt u/s.10(2) of the Act in the hands of the assessee individual as admittedly the said amount has been received by the assessee out of the current year’s income of the HUF, which fact is evidenced from the financial statements of HUF and scrutiny assessment order of HUF u/s.143(3) of the Act for A.Y.2012-13. No hesitation in directing the ld. AO to delete the addition made towards gift received from HUF. Accordingly, the ground No.2 raised by the assessee is allowed.
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