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2022 (4) TMI 158 - ITAT DELHIAddition u/s. 69A - case of the assessee was selected for limited scrutiny under CASS to examine the issue of cash deposit during the year - whether the assessee was having the explained cash which was deposited in his bank account? - HELD THAT:- Authorities below have not commented anything adverse on the evidences filed by the assessee regarding availability of cash and correctness of the cash flow statement. No material is brought on record rebutting the contention of the assessee. Therefore, the finding of the authorities below is purely based upon surmises, which is not permissible under law. AO ought to have given a clear finding regarding availability of cash in the specified bank notes, which were banned by the order of the Government. It was stated before the authorities below that the demonetization of currency was declared by the Reserve Bank of India on 8.11.2016. After demonetization there was huge crowed to deposit old currency and withdrew new currency by public. As per the assessee it was not safe in view of the banks being over crowded during that period. This plea of the assessee was rejected stating that on earlier occasion the assessee had withdrawn bigger amount of money from the bank account. We find merit into the contention of the assessee that there were big lines and the banks were over crowded. Therefore, it was open to the assessee for the safety of the money to deposit in piece meals till the period as allowed by the Competent Authority. Therefore, the basis of making addition, in my view, is unjustified and deserves to be deleted. Assessing Officer is hereby directed to delete the addition. Grounds of appeal taken by the assessee are allowed.
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