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2021 (7) TMI 1412 - AT - Income TaxAddition u/s 68 - Cash deposits in bank account unexplained - non rejection of books of accounts - HELD THAT:- As not disputed that the cash deposits made out of book balance should be considered as explained when the books of accounts of the assessee were not rejected. As notice that neither the AO nor CIT(A) has examined the cash book of the assessee. We notice that both the authorities have rejected the claim of the assessee that the cash deposits have been made out of earlier cash withdrawals made from the bank account on the reasoning that the earlier cash withdrawal has not been proved. Cash withdrawal could have very much been verified from the bank account of the assessee as well as from the entries made in the books of account. In the instant case, the books of account maintained by the assessee have not been rejected and it is the submission of the assessee that the cash withdrawals have been recorded in the books of account. In that case, if the cash has been deposited into the bank account from the cash balance available in the books of account, then it should be held that the cash deposits have been explained. However, as noticed earlier, the tax authorities have not examined books of account also. This issue needs to be set aside to the file of the AO for the limited purpose of examining as to whether the impugned cash deposits have been made out of cash balance available in the books of account. Accordingly, I set aside the order passed by Learned CIT(A) on this issue and restore the same to the file of the AO for the limited purpose of examining as to whether the impugned cash deposits have been made out of cash balance available in the books of account. Decided in favour of assessee for statistical purposes
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