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2022 (5) TMI 276 - AT - Income TaxAddition u/s. 68 - unsecured loans - HELD THAT:- There is nothing on record suggesting that the assessee had sought explanation from these parties regarding cash deposits. Therefore, in the absence of the inquiry from the concerned parties about the source of deposits of such amount, we are of the considered view that the authorities below erred in making addition merely on the ground of suspicion. As in the case of Smt. Seema Singhal, she has been withdrawing salary income and rental income to make the payment. In the case of M/s. S.K. Singhal (HUF), it was stated that lender had deposited only Rs. 10,000/- in cash and rest of sum of Rs. 2,90,000/- was credited through account payee cheque on 12.06.2014 and Rs. 30,000/- deposited in cash in the bank on 12.06.2014. Further, in the case of Smt. Shalika Singhal, it was stated that a sum of Rs. 30,000/- was received as a professional income in cash which was deposited out of the professional income. It is seen that the authorities below have not commented and made any inquiry on this explanation of the assessee. We find that there is a categorical submission by the assessee that in the case of lenders HUF, the amount was deposited through account payee cheque which was recorded as cash deposits by the assessing authority. Therefore, under these facts, additions made and sustained by the authorities below was in a mechanical manner without bringing on record the correct facts. Hence, additions made by the AO are hereby deleted. Ground raised by the assessee is allowed.
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