Section 68 addition for cash deposits cannot be made where...

Section 68 addition for cash deposits cannot be made where assessee filed return u/s 44AD and did not maintain books of accounts, as provisions of section 68 apply only when books are maintained. AO erred in invoking section 68 despite accepting return under 44AD without finding transactions as non-genuine. Telescoping benefit of withdrawals from same account should be given. Addition deleted as unjustified when assessee engaged in retail business, registered under relevant Act, and furnished bank statements showing deposits and withdrawals of nearly equal amounts without adverse findings by authorities.

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