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2023 (11) TMI 1183 - ITAT INDOREUnexplained deposit made in the bank account - assessee filed the return of income declaring total income from the business of trading in Cattle Feed (Cotten Seed Cake) - HELD THAT:- Deposit as well as withdrawal mostly by issuing cheques in banks favour showing the narration y/s (yourself) clearly manifest the transactions of issuing drafts as explained by the assessee for purchase of the goods. AO has added the entire deposit in the bank account to the income of the assessee without even considering facts available on record in the shape of the bank account statement of the assessee having both entries of deposit as well as the payments through bank drafts. Therefore, the addition made by the AO ignoring the relevant facts available on record is not justified when the assessee have already explained the source of deposit as sale proceeds and corresponding withdrawals represent the payments made for the purchases through bank drafts corroborating explanation of the assessee. Accordingly having considered the undisputed facts as reflected from the bank account statement of the assessee the addition made by the AO of the entire deposit made in the bank account is not justified and the same is deleted. Decided in favour of assessee.
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