https://www.taxtmi.com/caselaws?id=458867 The ITAT Hyderabad allowed the assessee's appeal against unexplained cash credit additions. The assessee, a small construction contractor with gross receipts of Rs. 35,52,000/-, had estimated income under section 44AD. The AO used cash deficit method to determine undisclosed income, but the ITAT found this inappropriate. The tribunal noted that construction businesses receive advances and make cash payments for labor and materials. Analyzing bank statements showed regular withdrawals following deposits, with peak deficit reducing from Rs. 28,05,679/- to Rs. 8,80,000/- within days. The ITAT concluded cash deposits were business-related and properly utilized, setting aside the CIT(A)'s order. en-us Mon, 30 Nov 2015 00:00:00 +0530 Tue, 19 Nov 2024 18:59:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458867 The ITAT Hyderabad allowed the assessee's appeal against unexplained cash credit additions. The assessee, a small construction contractor with gross receipts of Rs. 35,52,000/-, had estimated income under section 44AD. The AO used cash deficit method to determine undisclosed income, but the ITAT found this inappropriate. The tribunal noted that construction businesses receive advances and make cash payments for labor and materials. Analyzing bank statements showed regular withdrawals following deposits, with peak deficit reducing from Rs. 28,05,679/- to Rs. 8,80,000/- within days. The ITAT concluded cash deposits were business-related and properly utilized, setting aside the CIT(A)'s order. Case-Laws Income Tax Mon, 30 Nov 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458867