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2023 (5) TMI 680 - AT - Income TaxUnexplained Money u/s 69A - Cash Deposits in the Bank Account of the Firm - Addition based upon AIR Information received - HELD THAT:- Assessee had stated that the firm had deposited a sum of Rs.6,60,000/- in the bank account of the assessee however, the AO took it as Rs.6,10,000/-. Secondly, the AO did not take note of cash withdrawals of Rs.19,55,000/- by the assessee during the Assessment Year. This submission of the assessee is not adverted by CIT(A). Assessee had given a plausible explanation to the lower authority. We find merit into the contention of the assessee that if the gross receipts are taken at Rs.17,82,469/- but not at Rs.24,96,217/- after giving effect to the reversal entry of Rs.7,13,748/- as reflected in the Form 26AS. The income of the assessee firm would be at Rs.1,42,598/- if computed @ 8% of the contractual receipts on the presumptive basis. Hence, impugned addition as made by the AO and sustained by the Ld.CIT(A) is unjustified and deserves to be deleted. Appeal of the assessee is allowed.
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