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2023 (8) TMI 419 - ITAT SURATAddition of deposit into bank during demonetization period u/s 69A - as per assessee transaction has recorded in books of accounts with proper source of deposit and the amount has been deposited out of cash withdrawn from bank and available as cash in hand - HELD THAT:- The cash in hand is available with the company after wages and salary for the month of October and therefore we note that addition made by AO is not correct. We note that assessee’s books of account were not rejected by the AO and hence books result are genuine, therefore once the AO has accepted the books of accounts as genuine, the cash balance shown in the cash book should not be treated wrong (not genuine), as the cash book is a part of audited books of accounts. We note that amount was kept by assessee-company for meeting the requirement of expenses and contingency as per policy of company as depict from above and allegation of AO for keeping cash over a long period is not correct as mention in the Assessment order. AO had not able to brought any evidences on record which prove that cash in hand was not available with the company on the date of deposit of said amount into bank and moreover cash book having been accepted as genuine by assessing officer, it is proved that cash was available with the assessee-company on the fact of the case and hence the addition cannot be made arbitrary. See ATUL GUPTA V/S ITO [2004 (6) TMI 641 - ITAT DELHI] wherein held that where assessee had explained source of availability of cash with him to deposited into bank accounts, there was no reason to doubt correctness of the claim and no addition on that account could be made to assessee`s income. Thus we note that cash in hand recorded in books of accounts and on the basis of which assessee has been filing the Income tax return, hence in such cases addition should not be made. - Decided in favour of assessee.
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