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2022 (3) TMI 967 - ITAT AHMEDABADUnexplained cash deposits u/s 68 - bank account in which the cash was deposited was a joint account of the assessee with his father - HELD THAT:- It is an undisputed fact that the That both were in the business of contractors and had returned income on presumptive basis u/s. 44AD @ 8% net profit on business receipts - which has been accepted in scrutiny assessment by the Revenue. DR was unable to controvert the above facts before us. We fail to understand how the entire cash deposited has been/could be attributable to that belonging to the assessee alone particularly when no reason has been given by the Revenue for doing so. Noting that the admitted business receipts of the assessee and his father were in the ratio of 1: 2.5, it would be reasonable to attribute the cash deposits in the said bank account in the same ratio, applying which the cash deposits attributable to the assessee at the most comes to ₹ 9,16,500/- (32,08,00 x 1/3.5). The addition in any case of unexplained cash deposits, we hold, could not have exceeded ₹ 9,16,500/-. Since the entire exercise is based on surmises and approximations, the resultant unexplained cash deposit of ₹ 3 lacs odd out of total cash deposits of ₹ 32,08,000/-, being barely 10% of the same is too immaterial to be treated as cash deposit remaining unexplained. We therefore hold that there was no case at all for making any addition on account of unexplained cash deposits. The addition therefore made ₹ 12,83,200/- is accordingly directed to be deleted. - Decided in favour of assessee.
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