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2023 (3) TMI 210 - AT - Income Tax
Addition on account of cash deposits - HELD THAT:- We had carefully gone through the explanation tendered by the appellant during the course of proceedings before the CIT(A), which is extracted by the CIT(A). We also find that the ld. CIT(A) also extracted the entries in the bank statement of father of the appellant, wherein, cash withdrawals of Rs.18,00,000/- were shown. The appellant also filed the confirmation letter from his father stating that he had given cash of Rs.15,00,000/- out of withdrawals made by him.
It is evident there is no material to disbelieve the explanation given by the assessee and, therefore, the explanation tendered by the assessee cannot be said to be unreasonable and is a plausible explanation. We do not see any reason to reject the explanation of the assessee. In the circumstances, we are of the considered opinion that the CIT(A) ought not to have rejected the explanation of the assessee. We direct the AO to delete the addition made on account of cash deposits. Thus, the ground of appeal no.1 stands allowed.
Addition on account of cost of improvement - HELD THAT:- We find that the appellant had failed to produce any evidence in support of the cost of improvement. Accordingly, we confirmed the addition. Thus, the ground of appeal no.2 stands dismissed.