2025 (6) TMI 1298

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....was working as manager with M/s. Diamond Foot Care Udyog Pvt. Ltd. During the period relevant to assessment year under appeal there were cash deposits aggregating to Rs. 21,57,000/- in bank account of the assessee over the period of 12 months. The assessee explained before the Assessing Officer (AO) that the cash deposits in the bank account of the assessee are in fact reimbursement of actual expenses towards transportation expenses for vehicle used for the business purposes of the company viz. fuel, traffic challan, etc. The assessee also furnished confirmation from the company to substantiate his contentions. However, the AO disbelieved the submissions of the assessee and made addition of Rs. 21,57,000/- u/s. 68 of the Act. Aggrieved by t....

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....he assessee examined. The assessee was working as Manager (Admn.) with M/s. Diamond Foot Care Udyog Pvt. Ltd. during the period relevant to AY 2011-12. There were cash deposits to the tune of Rs. 22,82,000/- during the period relevant to assessment year under appeal in bank account of the assessee. The cash deposits were spread out during the entire Financial Year. The contention of the assessee is that the cash deposits are actual reimbursement made by company towards maintenance and running of transport vehicles for the business. In support of his contention the assessee has placed on record ledger account of the company as well as confirmations from the said company. The confirmation from assessee's employer company is at page no. 21 of ....

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....ompany had reimbursed transportation expenses to the assessee in cash. Considering entire facts of the case and documents on record, I find merit in the submissions of the assessee. The assessee has been able to substantiate that the amount of Rs. 21,57,000/- deposited in the bank account of the assessee is in fact the amount received by the assessee from the employer company for incurring expenditure towards transportation viz. maintenance, fuel, toll tax, etc. Thus, addition of Rs. 21,57,000/- u/s. 68A of the Act is directed to be deleted. 7. In the result, impugned order is set aside and appeal of the assessee is allowed. Order pronounced in the open court on Tuesday the 29th day April, 2025. ============= Document 1 (21 Di....