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2022 (12) TMI 535 - AT - Income TaxAddition of deposits found in bank statement u/s 68 - CIT-A confirmed part addition - HELD THAT:- Assessee has duly submitted the cash flow statement and cash balance adequate to cover the deposits was reflected therein. On the ground of inadequate withdrawal for personal purpose, the Assessing Officer did not give any credit and added entire deposit. As regards merit of the cash flow, adequate cash flow was available for deposits in the bank account. Hence, the assessee deserves to succeed on this count that there was available cash withdrawal from earlier period which is sufficient to cover the deposit amount. CIT(A) has been totally arbitrary in allowing part addition without any basis. Hence, the assessee deserves to succeed on this count only and in my considered opinion that the cash flow statement submitted which has been duly recognised by the Ld. CIT(A) also is covering the cash deposits in the bank account. The authorities below have made part disallowance only on presumption about the personal expenses of the assessee, which is totally based on surmises and cannot be sustained. Hence we set-aside the order of the Ld. CIT(A) and decide the issue in favour of the assessee.
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