2023 (2) TMI 122 - AT - Income Tax

Addition being cash deposit during demonetization period - HELD THAT:- We note that assessee has a turnover in the year under consideration and in the immediately preceding year. At such volume of turnover, the quantum of cash sales and realization in cash are normal in the conduct of its business. We also note that all the details in respect of collection from the debtors were identified and submitted before the AO as well as before the Investigation wing of the Department, prior to the assessment proceedings.

Considering the factual matrix, corroborated with documentary evidence, we are inclined to accept the contentions of the assessee and direct to delete the addition made by AO and confirmed by ld. CIT(A), by setting aside their orders. Accordingly, ground taken by the assessee in this respect is allowed.