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2023 (9) TMI 674 - AT - Income TaxUnexplained cash deposit in savings bank account - assessee had not furnished details in respect of agricultural income, family members and their activity, borrowings for agricultural activities, cash flow statement, ownership of bank account etc. - HELD THAT:- CIT(Appeals) has erred in facts and in law in sustaining the addition of Rs. 5 lakhs on ad-hoc basis, when it has not been disputed that the assessee is having agricultural income for past many years and further, no rationale/basis has been given for confirming the addition on ad-hoc basis. The ITAT Ahmedabad in the case of Samir Kishor Parekh [2022 (6) TMI 1111 - ITAT AHMEDABAD] held that that addition made on estimated basis, without rejecting books of accounts of the assessee, is unsustainable in law. Further, it is well-settled law that no addition could be made on estimated basis without rejecting books of account of assessee as held by various Courts in the case of Asian Grantio India Ltd. [2019 (10) TMI 1193 - ITAT AHMEDABAD], Royal Marwar Tobacco Product (P.) Ltd.[2007 (12) TMI 321 - ITAT AHMEDABAD], Anil Kumar &Company [2016 (3) TMI 184 - KARNATAKA HIGH COURT], Ercon Composites [2013 (12) TMI 902 - ITAT JODHPUR] to name a few. Accordingly, the addition as sustained by Ld. CIT(Appeals) is directed to be deleted, looking into the instant facts which has been done as on ad-hoc basis, especially when fats placed on record by the assessee have not been disputed. Appeal of assessee allowed.
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