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2023 (5) TMI 478 - ITAT MUMBAIAddition u/s 69A - being the amount of cash deposited in Bank Account - assessee being into the business of beauty parlor and tuition work deposited demonetization currency notes - HELD THAT:- Assessee has offered income under section 44AD at 8% on cash receipts. It is the case of the assessee that she was having sufficient income year on year basis and drew the attention of the Bench towards cash book opening balance, bank statement, cash book pertaining to the subsequent years. The assessee has duly explained the cash in hand having been collected from her beauty parlor business and tuition work. All these evidences were there before the AO as well as the CIT(A) but they have brushed aside the same without examining the same and proceeded to make the addition. Since the cash deposit of demonetization currency by the assessee is duly explained the addition made by the AO and confirmed by the CIT(A) is not sustainable. Identical issue was decided in case of DCIT vs. Anuya Jayant Mhaiskar [2022 (8) TMI 438 - ITAT MUMBAI] and Nemchand Vasanji Chheda [2021 (7) TMI 1412 - ITAT MUMBAI] wherein it is held that when sufficient unutilized funds in the books are available with the assessee no addition can be made. So the closing balance or cash in hand with the assessee is certainly disclosed income and opening balance cannot be considered as undisclosed income. Moreover, the assessee has been regularly filing return of income and has duly shown her income in the preceding as well as succeeding years earned in cash.Appeal filed by the assessee is allowed.
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