Cash deposits supported by audited books cannot be taxed again as unexplained money; PF and ESI ground not pressed.

Cash deposits during demonetisation were held not taxable as unexplained money where the assessee maintained audited books, recorded the receipts from cash sales and business operations, and supported the deposits with bank statements, audited financials, challans and turnover details. As the books were not rejected and no defects were found in the recorded sales, the same cash could not be taxed again under section 69A. The addition was deleted. The separate ground on employees' PF and ESI contribution was not pressed and was dismissed on that basis.

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Issues: Whether the addition made towards cash deposits of Rs. 29,77,500 deposited during the demonetisation period was sustainable, and whether the disallowance relating to employees' PF and ESI contribution was to be interfered with.

Analysis: The assessee maintained audited books of account, and the cash deposits were supported by cash sales and business receipts reflected in the books. The lower authorities did not reject the books or point out defects in the recorded sales, and the assessee produced bank statements, audited financials, cash deposit challans, and turnover details. On these facts, the addition was held to be unsustainable, since cash already credited in the books could not again be treated as unexplained and section 69A could not be invoked. The separate ground relating to PF and ESI contribution was not pressed.

Conclusion: The addition of Rs. 29,77,500 was deleted in favour of the assessee. The ground relating to PF and ESI contribution was dismissed as not pressed.

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