Appeal successful in challenging unexplained cash deposits for A.Y. 2017-18. Assessing Officer's decision overturned. The appeal challenging the addition of cash deposits as unexplained money under Section 69A for A.Y. 2017-18 was successful. The Assessing Officer's ...
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Appeal successful in challenging unexplained cash deposits for A.Y. 2017-18. Assessing Officer's decision overturned.
The appeal challenging the addition of cash deposits as unexplained money under Section 69A for A.Y. 2017-18 was successful. The Assessing Officer's decision to add Rs. 11,21,000 was overturned as the appellant provided adequate documentation, including cash books and bank statements, supporting the cash transactions as part of regular business activities. The court found the appellant's explanation satisfactory, leading to the allowance of the appeal.
Issues Involved: The appeal challenges the order of the Ld. Commissioner of Income Tax (Appeals) regarding the addition of cash deposits in the bank account as unexplained money under Section 69A for A.Y. 2017-18.
Summary: 1. The assessee filed the return of income for A.Y. 2017-18, declaring total income of Rs. 5,91,170. The Assessing Officer made an addition of Rs. 11,21,000 as unexplained money under Section 69A due to significant cash deposits during the year.
2. The assessee appealed before the CIT(A), who dismissed the appeal. The appellant contended that they could not respond to the notices due to not checking their email regularly. They argued that the cash deposits were part of regular business activities, supported by relevant documents.
3. The Ld. D.R. argued that the appellant failed to explain the cash withdrawals and deposits before and during demonetization, supporting the assessment order.
4. After hearing both parties and examining the evidence, it was found that the appellant had provided sufficient documentation including cash books, sales registers, and bank statements to justify the cash transactions. The Assessing Officer did not dispute the business activities or the cash transactions, leading to the allowance of the appeal.
Final Decision: The appeal by the assessee is allowed, and the addition of Rs. 11,21,000 as unexplained money under Section 69A is deemed unjustified based on the provided documentation and explanation.
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