2025 (2) TMI 1676

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....ddition u/s 68 by holding that the cash deposits of Rs. 19,00,000 made in bank account during A.Y.2011 12 represented undisclosed income of the appellant without appreciating that the said addition was not justified on facts and in law. 2] The learned CIT(A) failed to appreciate that the source of cash deposits of Rs. 19,00,000 was duly explained to be out of advances received from customers for booking of flat and this fact was also stated in the registered deeds and confirmations of customers filed by the appellant and therefore, the addition u/s 68 made only on the basis of suspicion and surmises was not justified. 3] The learned CIT(A) ought to have appreciated that the advances received from customers which were taxed....

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.... Based on the information available with the Revenue regarding the cash deposit of Rs. 32,16,000/- in the bank account of the assessee held with The Mahanagar Co-op Bank Ltd., Nashik, valid notice under section 148 of the Act was duly served along with notice 143(1) r.w.ws 142(1) of the Act. In compliance, the Assessee furnished return of income declaring income of Rs. 6,01,970/-. 3.1 During the course of assessment proceedings, it was said that assessee is involved in the activity of land dealing, commission income and bakery business and income has been offered under section 44AD of the Act. When the assessee was asked to explain the source of cash Rs. 32,16,000/-, a cash flow statement and statement of affairs was provided. On perusal....

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....le deeds, wherein the transaction of receiving cash advance from the customers have been mentioned. All these documents have been placed before the ld.CIT(A) as well as Assessing Officer. 7. On the other hand, ld.DR for the Revenue relied on the orders of Lower Authorities. 8. I have heard rival contentions and perused the records placed before me. The only issue for my consideration is whether the ld.CIT(A) was justified in confirming action of the Assessing Officer making addition for unexplained cash deposit of Rs. 19 lakhs. On perusal of the details, I find that the assessee started construction business during the year under consideration and planned for construction of flats. At the time of booking, the advances were received in....