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2015 (10) TMI 1895 - ITAT AHMEDABAD

2015 (10) TMI 1895 - ITAT AHMEDABAD - TMI - Unexplained cash deposits in the bank account - CIT(A) deleted 1the addition u/s 68 - Held that:- CIT(A) while deleting the addition to the extent of deposits from business has noted that considering the nature of business of Assessee, the receipts of sale proceeds by assessee in cash and the same being deposited in the bank account to be a plausible explanation. Ld. CIT(A) has also noted that Assessee had issued cheques against the cash deposits and c .....

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T(A) in view of the fact that Assessee was regularly assessed to tax. Considering the totality of the facts and in view of any contrary material placed on record by Revenue and further as to how the decision relied upon by ld. CIT(A) would not be applicable to the present case, we find no reason to interfere with the order of ld. CIT(A) and thus the ground of Revenue is dismissed. - Decided in favour of assessee. - I.T.A. No.2097/AHD/2012 - Dated:- 28-8-2015 - SHRI ANIL CHATURVEDI AND SHRI KUL B .....

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al income of ₹ 1,59,041/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) r.w.s. 144 vide order dated 30.12.2011 and the total income was determined at ₹ 38,35,040/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who vide order dated 12.07.2012 granted substantial relief to the Assessee. Aggrieved by the aforesaid order of ld. CIT(A), Revenue is now in appeal before us and has raised the following effec .....

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in the transactions. A.O noted that Assessee failed to furnish the details and in the absence of satisfactory explanation, A.O considered the total deposits of ₹ 36,60,000/- as undisclosed income of the Assessee. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who decided the appeal by holding as under:- 4.2 I have carefully considered rival submissions. I have also perused various case laws relied upon by the appellant. 'It is seen that appellant is engag .....

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presumption, total turnover of the appellant will be ₹ 33,08,500/- (165425 x 20). This way, the facts available on record clearly indicates that appellant's total turnover in retail business of garments is ₹ 33,08,500/-. It is an established practice in the marker that sale proceeds in retail business are generally received in cash This way, appellant's explanation that cash sale proceeds of ₹ 33,08,500/- was deposited with bank is plausible and I am inclined to agree .....

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ew of above facts I am of the considered view that the-appellant has filed a plausible explanation to explain the source of cash deposits to the extent of ₹ 33,08,500/-. Accordingly, I am inclined to agree with the contentions of the appellant. In this regard, the appellant has rightly placed reliance on the case of Shri Narendrasingh Lakhubhai Rana, ITA No.2768/Ahd/2010 dtd.25-2-2011. In this case., Hon'ble ITAT observed as under. "4. After hearing the submissions of the both the .....

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was noticed that there was a bank account and the assessee had deposited the impugned sum of ₹ 20,37,900/-. However, thereafter on verification, the learned CIT(A) has noticed that the total grossreceipts from the transport business were higher than the said deposits. Even during the remand proceedings, the said explanation of the assessee was not doubted. Even before us, the monthly gross-receipts from transport business have been placed on record which were stated to be cash receipts ear .....

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#39;s ground is accordingly dismissed." 4.3In view of the above facts, I am inclined to agree with the contentions of the Id. A.R. Accordingly, I hold that appellant has explained source of cash deposits to the extent of ₹ 33,08,500/- and the appellant will get relief to this extent. 4.4The appellant has also given plausible explanation to explain the source of cash deposits of ₹ 3,51,500/- (36,60,000 -33,08,500). The appellant has contended that agriculture income to the extent .....

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ome, which is accepted by the A.O. accordingly, I do not have any hesitation in accepting the source of cash deposit to the extent of ₹ 2,48,135/-. The remaining cash deposit is small amount of .Rs. 1,03,365/-. (3,51,500 - 2,48,135) The appellant submitted that source of this cash deposit is personal saving. Since amount is small and the appellant is regularly assessed to tax accordingly appellant's contention is plausible and I am inclined to agree with this contention of the appellan .....

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