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2023 (7) TMI 227 - AT - Income TaxAddition of cash deposit during demonetization period u/s. 69 r.w.s. 115BBE - HELD THAT:- To bring any amount u/s. 69 the nature and source of investment, needs to be examined. In case the assessee explains the nature and source of investment, then the question of making addition towards unexplained investment u/s. 69 of the Act does not arise. In this case, the source of deposits has not been disputed and has been created out of ordinary business sales which has been credited into books of accounts and profits has also been duly included in the return of income filed in relevant assessment year. Therefore, we are of the considered view that, additions cannot be made u/s. 69 and taxed u/s. 115BBE towards cash deposits made to bank account. As on perusal of details and records, we find that the assessee has filed all details to explain source for cash deposits and on the basis of details filed by the assessee, AO never disputed fact that source for cash deposit is not out of ordinary business receipts, which has been accounted in the books of accounts of the assessee and further, there is no deviation in cash deposits during demonetization period when compared to earlier period in same financial year and in earlier financial year. AO erred in making additions towards cash deposits during demonetization period u/s. 69 - Decided in favour of assessee.
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