Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
AO accepted assessee company's books of accounts and net profit disclosed therein. However, AO treated cash deposits in bank accounts during demonetization period as unexplained cash credits u/s 68, rejecting assessee's explanation that deposits were from business receipts recorded in books. ITAT held AO cannot accept book results but reject transactions explaining cash availability on 08.11.2016. Cash book showed cash-in-hand of Rs. 12,00,442.54 on 08.11.2016 was consistent with pre and post-demonetization period. No justification to treat deposits as unexplained credits u/s 68. Assessee's appeal allowed.
AO accepted assessee company's books of accounts and net profit disclosed therein. However, AO treated cash deposits in bank accounts during demonetization period as unexplained cash credits u/s 68, rejecting assessee's explanation that deposits were from business receipts recorded in books. ITAT held AO cannot accept book results but reject transactions explaining cash availability on 08.11.2016. Cash book showed cash-in-hand of Rs. 12,00,442.54 on 08.11.2016 was consistent with pre and post-demonetization period. No justification to treat deposits as unexplained credits u/s 68. Assessee's appeal allowed.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
Join Channel 
