2025 (9) TMI 645

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....d to as the "Act") and relates to Assessment Year (A.Y.) 2017-18. 2. The grounds of appeal are raised as under: "(i) The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 3,49,42,000/- made by AO on account of unexplained cash deposit in bank account u/s. 69A of the Act, despite the fact that: a) the bank account no. 30480200000034 is neither mentioned in books nor disclosed in ITR. b) the then Ld. AO has clearly mentioned in the assessment order that the assessee has not submitted specific details as per notices u/s 142(1) of Act dated 18.04.2023 and show cause notice issued on 26.04.2023 during E-assessment proceedings and the assessee clearly failed to give any explanation about the nature and source of cash....

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....noted the assessee to have shown a turnover of 10.01 crores during the year and total cash receipts in the cash book to be 5,23,85,241/-. Basis the above facts the Ld. CIT(A) held that the transactions in the impugned bank account of the assessee stood reflected in its books and accordingly, the entire credit in the bank account including the cash deposited therein stood duly explained. As for the findings of the Assessing Officer that the assessee did not furnish information during assessment proceedings, he noted that as per the data available the assessee did submit Income Computation, Tax Audit Report, Balance Sheet, Profit & Loss Account and its cash book and that the books of the assessee was audited and Audit Report was filed along w....

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.... reported cash deposit. As per the bank book of A/c no. 30480200000034 the total credits (cash and other) in this account amounts to Rs. 3,36,41,517. The balance of this account ts reflected in the balance sheet. The appellant shows turnover of Rs. 10,01,67,885 during the year. As per the cash book, the total cash receipts during the year amounts to Rs. 5,13,85,241. Therefore it is evident that transactions in account number 30480200000034 is reflected in the books of account. 6.3 The AO has held that during assessment, appellant failed to furnish the necessary information and hence the addition was made. However as per the data available, income computation, tax audit report, balance sheet, profit and loss account, profit and loss accoun....

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....sessee. 5. Ld. Counsel for the assessee on the other hand, relied on the findings of the Ld. CIT(A) and stated that all necessary evidences were filed during the assessment proceedings as noted by the Ld. CIT(A). He further pointed out that in the case of the assessee in regular scrutiny assessment proceedings also the case of the assessee was picked up for scrutiny on account of huge cash deposit during the demonetization period. The assessee during the assessment proceedings had furnished his entire books of accounts duly audited under Section 44AD of the Act along with Tax Audit Report with Profit & Loss Account, Balance Sheet, Month Wise Purchase and Sale Register, Ledger of Expenses etc. and after considering which no addition had bee....