2023 (5) TMI 738 - AT - Income Tax

Addition u/s 69A - unexplained money - cash deposit made by the assessee during the demonetization period - AO rejected the books of account u/s 145(3) and viewed that assessee has nothing to offer regarding cash deposit during the demonetization period - HELD THAT:- Both the authorities below accepted the fact that the amount received by assessee are nothing but sale proceeds in the course of business of the assessee. The addition has made only on the basis that after demonetization, the demonetization note could not have been accepted as valid tender. Since the sales proceeds for which cash was received are added u/s 69A of the Act which would amount to double taxation once as sale and another against as unexplained cash credit which is violate principles of taxation.

As relying on Senco Alankar case [2022 (8) TMI 79 - ITAT KOLKATA] hold that there is no reason to interfere with the factual findings given by the ld. CIT(A) in deleting the addition - Decided in favour of assessee.