https://www.taxtmi.com/caselaws?id=753025 The ITAT Delhi allowed the assessee's appeal against additions made for unexplained investments. The tribunal found that since investments were made through banking channels with specific withdrawals from Axis Bank account, and the source of deposits was explained and admitted, making additions on account of withdrawals was unjustified. Regarding the bridal business, the AO and CIT(A) erred in holding 30% of deposits based on suspicion alone. The tribunal accepted that deposits were taken as security from customers for bridal items and later refunded. Given the gross income of Rs. 4,25,562/- from hiring bridal items, security deposits could reasonably be calculated at 10 times the hire charges. The assessee satisfactorily explained all bank entries regarding cash deposits and withdrawals, leading to deletion of additions. en-us Mon, 20 May 2024 00:00:00 +0530 Thu, 23 May 2024 08:33:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753025 The ITAT Delhi allowed the assessee's appeal against additions made for unexplained investments. The tribunal found that since investments were made through banking channels with specific withdrawals from Axis Bank account, and the source of deposits was explained and admitted, making additions on account of withdrawals was unjustified. Regarding the bridal business, the AO and CIT(A) erred in holding 30% of deposits based on suspicion alone. The tribunal accepted that deposits were taken as security from customers for bridal items and later refunded. Given the gross income of Rs. 4,25,562/- from hiring bridal items, security deposits could reasonably be calculated at 10 times the hire charges. The assessee satisfactorily explained all bank entries regarding cash deposits and withdrawals, leading to deletion of additions. Case-Laws Income Tax Mon, 20 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753025