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2023 (11) TMI 1182 - ITAT RAIPURUnexplained money u/s 69A - cash deposited in bank account - Assessee had not filed its return of income for the said year - HELD THAT:- So far, the A.O.'s observation that the assessee firm's explanation, regarding the source of cash deposits in its bank account did not inspire much confidence as they were made during the demonetization period; we are afraid that the same cannot be accepted. On the contrary, the conduct of the assessee firm in depositing whatever cash that was available as Opening Cash In Hand [C.I.H] in its books of account during the demonetization period could be the only prudent approach that the assessee firm could have adopted. Also, as the A.O had neither established that the C.I.H of Rs. 52.47 lac (supra) that was available with the assessee firm on 01.04.2016 was thereafter utilized by it for making any other investment or was exhausted towards incurring any expenditure, therefore, find no justification on his part in summarily rejecting the assessee’s explanation that the cash deposits of Rs. 33 lacs (supra) made in its bank account during the year were sourced out of the same. Accordingly, explanation of the assessee firm as regards the source of the cash deposits in its bank account maintained with Federal Bank, Bilaspur merits acceptance. Thus vacate the addition made by the AO u/s 69A of the Act. The Ground of appeal no. 1 of the assessee firm is allowed.
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