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2024 (1) TMI 110 - ITAT DELHIAddition on account of cash deposit - HELD THAT:- The return of income for the assessment year 2016-17 was filed by the assessee on 27.03.2017 declaring total income of Rs. 7,09,329/- under the head income from other sources which included other income offered in the sum of Rs. 6,78,529/-. Admittedly this other income of Rs. 6,78,529/- was earned by the assessee only in cash and that the same was not credited in the bank account of the assessee. The assessee during the year made cash deposits on the following dates in IDBI Bank Assessee also made cash withdrawals on 24.11.2016 from the same bank account amounting to Rs. 50,000/- which sum is definitely available as a source for explaining cash deposits. Hence, to this extent the assessee would be automatically eligible for credit. With regard to the remaining sum of Rs. 45,000/- of cash deposits, as stated earlier, we find that assessee had duly offered the other income of Rs. 6.78 lakhs earned in cash, which itself explains the source for making cash deposit of Rs. 45,000/-. Hence, we hold that the entire cash deposits of Rs. 95,000/- stands duly explained by the assessee and the there is no scope for making any addition. Interest u/s 234B which is consequential in nature and does not require any specific adjudication. Interest u/s 234C of the Act, the law is very well settled that the same shall be charged only on the returned income and not on the assessed income.
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