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2023 (10) TMI 698 - ITAT SURATCash deposited during the demonetization period unexplained - huge credits appearing in the bank accounts of the assessee - HELD THAT:- As during the assessment stage, the assessee has submitted enough documents and evidences to prove the cash deposit, such as, Copy of PAN, Copy of bank account, Copy of first page (BDCC Bank & Dena Bank account), Certificate of incorporation, Audit report for A.Y. 2017-18, Members list in Mandli and written submission to explain the source of the source. AO did not find any fault in these documents and evidences so submitted by the assessee, except to say that explanation of the assessee is not acceptable. AO has not refuted or discredited these evidences and documents. AO does not mention why he is not accepting these evidences. On the contrary, the AO has just brushed aside these evidences without even a word on why they are not acceptable. It is a well settled Law that when an assessee has all the possible evidence in support of its claim, they cannot be brushed aside based on surmises. Assessee-trust has received subscription/donation and the same was amount collected/received from its members. As stated that this Mandali has 3150 women members and each member has taken share of Rs. 100/- to Rs. 500/- according to their capacity. Thereafter, these savings are collected by the President and Secretary. The amount so collected is deposited in the Bank Account. Assessee (Mandli) provide loan facilities to its members @ 12% and the dividend is distributed to its member annually during the Annual General Meeting of every year. Therefore, based on these facts and circumstances, delete the addition. Assessee appeal allowed.
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