2024 (1) TMI 1262

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....i Aman Garg, CA For the Department : Shri Sidharth Bhim Singh, Sr. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the Revenue is preferred against the order of the ld. CIT(A) Karnal dated 10.07.2020 pertaining to A.Y. 2017-18. 2. The sum and substance of the grievance of the Revenue is that the ld. CIT(A) erred in deleting the addition of Rs. 69 lakhs made on account....

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....dings, the assessee was asked to explain the source of cash deposits of Rs. 69 lakhs in its bank account during the F.Y. 2016-17. 6. In its reply, the assessee explained that it is engaged in the business of trading wood and during the months of October - November 2016, the assessee has sold wood to various parties and sales were made in cash, which has been deposited during demonetization peri....

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.... ld. CIT(A). It was strongly contended that cash deposit is duly reflected in the books of account maintained in the ordinary course of business both under the Companies Act and under the Income Tax Act. It was explained that the assessee was having sufficient cash in hand available with it which was received out of cash sales made during the period. 10. Once again, the assessee filed necessary....

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....13. Per contra, the ld. counsel for the assessee reiterated what has been stated before the lower authorities. 14. We have given thoughtful consideration to the factual matrix discussed hereinabove. The undisputed fact is that there is not even a whisper of any defect, error or infirmity in the books of account maintained by the assessee which were audited both under the Companies Act and under....