Double taxation of accepted business receipts under section 69A was rejected, and the cash deposit addition deleted.

Cash deposits cannot be taxed again under section 69A where they are already reflected in accepted business gross receipts and supported by books, ITR and cashbook evidence. The Tribunal noted that the Assessing Officer had accepted the business income embedded in the receipts, had not rejected the books, and produced no independent material showing fictitious cash receipts. As the same receipts were sought to be taxed twice, the addition was deleted and the Revenue's appeal dismissed.

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Issues: Whether the addition of Rs. 1,33,18,000 made under section 69A of the Income-tax Act, 1961 on account of cash deposits in the assessee's bank accounts for AY 2017-18 is sustainable where the same receipts form part of business gross receipts accepted by the Assessing Officer.

Analysis: The Tribunal examined the factual matrix including the assessee's books, ITR, cashbook extracts and evidence of truck operations showing gross receipts of Rs. 2,10,75,774 for FY 2016-17 while cash deposits aggregated to Rs. 1,33,18,000 in multiple tranches. The Assessing Officer had accepted the business income embedded in those gross receipts and had not rejected the books of account or produced independent corroborative material to show the cash receipts were fictitious. The CIT(A) admitted additional evidence produced on appeal, remanded it to the AO for verification (who did not file a remand report) and concluded that treating the same receipts both as business income and as unexplained deposits resulted in double taxation. The Tribunal found no material to disturb the CIT(A)'s factual findings and observed that taxing the same receipts twice is not justified where the books and returns reflecting those receipts were accepted.

Conclusion: The addition of Rs. 1,33,18,000 under section 69A of the Income-tax Act, 1961 is not sustainable and is deleted; the Revenue's appeal is dismissed.

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