Tribunal directs deletion of INR 12,40,000 addition under section 68.

The Tribunal allowed the appeal, directing the Assessing Officer to delete the entire addition of INR 12,40,000 made under section 68 of the Act. The Tribunal found the cash flow statement credible and supported by financial records, aligning with claimed amounts and adequately explaining drawings and cash balances. The order was pronounced on 31.05.2023.

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Issues involved:
The appeal challenges the order of CIT(A)-23, New Delhi dated 31.01.2022 for AY 2017-18 regarding the addition of INR 12,40,000 out of total addition of INR 21,40,000 made by the Assessing Officer under section 68 of the Act read with Section 115BBE on account of cash deposited by the assessee in his bank account.

Details of Judgment:

Issue 1: Addition of INR 12,40,000
The assessee contended that the CIT (Appeals) erred in upholding the addition of INR 12,40,000, out of the total addition, as unexplained cash deposited in the bank account. The counsel presented a detailed cash flow summary for the period, demonstrating the source of the deposited amount. The balance sheet of the preceding financial year also supported the cash balance brought forward. The Assessing Officer's denial of certain withdrawals without basis was highlighted. The Tribunal found the cash flow statement credible and supported by financial records. The average withdrawals per month aligned with the claimed amount, and the drawings and cash balance were adequately explained. Consequently, the Tribunal allowed the grounds of the assessee and directed the deletion of the entire addition.

Conclusion:
The Tribunal allowed the appeal of the assessee, directing the Assessing Officer to delete the entire addition. The order was pronounced in the open court on 31.05.2023.

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