2023 (3) TMI 611 - AT - Income Tax

Addition u/s 69A - cash deposit in old denomination in his bank account maintained with HDFC Bank during demonetization period - HELD THAT:- As assessee has explained deposits shown in the return of income much before demonetization period.

So far as remaining part of cash deposit find that cash deposit is clear from cash book, which shows the opening cash balance of Rs. 4.92 lakhs. The assessing officer disputed the said figure of opening cash balance without verifying or cross checking from the entry in the capital account. The capital account and the computation of income for earlier years is not disputed by the assessing officer. The assessee is not showing meagre income in his return of income.

Once, the cash flow statement is not controverted by assessing officer as well as by ld CIT(A), which is based on the entry made in the cash book, then the source of cash deposit in the bank account cannot be brushed aside by the lower authorities. My view is also supported by the decision of Perminder Kaur Matharoo [2022 (11) TMI 779 - ITAT DELHI] and Ahmedabad Tribunal in Kavitaben Chintanbhai Patel [2022 (8) TMI 246 - ITAT AHMEDABAD] In view of the above factual discussion, no merit in the addition made by assessing officer and sustained by ld CIT(A), and accordingly direct the assessing officer to delete the addition. In the result, the grounds of appeal raised by the assessee are allowed.