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2022 (7) TMI 1110 - AT - Income TaxCash deposited in Bank on different dates during demonetization period - Deposits in three bank accounts out of cash in hand being Income from Agriculture activities, Receiving from Transport Business and out of accumulated past savings - only reason for not accepting the contention of the assessee that such deposits were part of business receipts is that the assessee had deposited these amounts in cash during the demonetization period - HELD THAT:- While making addition the authorities below have ignored the fact that in the same year before the demonization period started i.e. from 01/04/2016 to 08/11/2016, there was cash deposits which fact is apparent from the order of CIT(A) where he has noted this fact of having deposited such amount in cash during these dates. If in the same year, cash can be accepted to be belonging to the business and has been accepted to be part of business receipts, there cannot be reason that a sum in the same year should not be accepted as income from the same business. Moreover, we find that in the immediate preceding year, the assessee had declared total receipts of Rs.62 lacs and all of the receipts were in cash and AO during assessment proceedings had accepted the net income declared by assessee. A copy of assessment order dated 17/12/2018 is placed. The fact that in the preceding year all receipts were in cash is verifiable from the copy of reply filed by assessee. The nature of business run by the assessee is transport business and agricultural income and in both businesses, there is a pre dominant role of cash. Moreover, we find that the assessee’s husband is also old income tax payee like the assessee which fact is verifiable where the copies of returns of income of her husband are placed. The assessee has been declaring her income on presumptive basis every year and therefore, there is no justification in the action of CIT(A) by which he has upheld the addition. In view of the above, the addition sustained by learned CIT(A) is deleted and the appeal of the assessee is allowed.
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