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2023 (10) TMI 696 - AT - Income TaxAddition u/s. 69A - cash deposits in the bank accounts as unexplained income - gap of one year in cash deposits - assessee produced and explained the cash deposits by producing books of accounts, the same were rejected by the Assessing Officer on the sole ground that the assessee has not filed original Return of Income u/s. 139(1) of the Act and regular Return were filed only from the AY 2015-16 onwards. HELD THAT:- It is well settled principle of law that addition u/s. 69A of the Act cannot be made in respect of those assets/moneys/entries which are recorded in the assessee’s books of accounts. See SMT. TEENA BETHALA [2019 (9) TMI 3 - ITAT BANGALORE] held where the entries are recorded in the assessee's books of account, addition made u/s 69A of the Act is bad in law. In the case of ACIT vs Baldev Raj Charla [2008 (12) TMI 241 - ITAT DELHI-C] also held that merely because there was a time gap between withdrawal of cash and cash deposits explanation of the assessee could not be rejected and addition on account of cash deposit could not be made particularly when there was no finding recorded by the assessing officer or the Commissioner that apart from depositing this cash into bank as explained by the assessee, there was any other purposes it is used by the assessee of these amounts. In view of above facts, the ground number 1 of the appeal of the assessee is allowed.
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