2025 (7) TMI 1233 - AT - Income Tax

Unexplained cash deposits - HELD THAT - As Assessee submitted Form 26AS as well as the bank statement held with Bank of Baroda to demonstrate that the actual cash deposits in the bank account of the assesee were only to the tune of Rs. 1, 05, 000/-. On going through the supporting evidences submitted by the assessee we are of the view that the AO has made addition of an amount which is beyond the actual cash deposits made by the assessee in the said bank account. Accordingly we are of the view that the additions made by the AO is liable to be deleted. Appeal of the assessee is allowed.

Summary

The Appellate Tribunal (ITAT Ahmedabad) allowed the assessee's appeal against the Ld. CIT(A)'s order for A.Y. 2019-20. The key issues were (1) the Ld. CIT(A)'s refusal to condone delay in filing the appeal, and (2) the addition of Rs. 2,12,750/- on account of unexplained cash deposits. The Tribunal found that the Assessing Officer's addition exceeded the actual cash deposits, as evidenced by Form 26AS and bank statements showing deposits of only Rs. 1,05,000/-. Holding that the AO's addition was "liable to be deleted," the Tribunal reversed the addition and allowed the appeal.