The Delhi Bench of Income Tax Appellate Tribunal (ITAT) held that there is no vacillation to hold that the source of the cash deposited in the bank account has been undisputedly proved, hence deleted the addition made by the Assessing Officer (AO).
The Assessee and spouse are regular income tax assessees. Both had been running Venture News Agency, distribution of newspaper through vendors at Bhiwadi. The assessee has duly filed his Income tax return for A.Y (Assessment Year ) 2017-18 declaring gross total income of Rs. 15,13,080/- having income from three sources viz. Rental income, Pension income and interest income.
The case was selected for scrutiny for the said Assessment Year under CASS (Computer-Assisted Scrutiny Selection) and assessment was completed under Section 143(3) of the Income Tax Act, 1961 at an assessed income of Rs. 36,07,935/- by making an addition of Rs. 20,94,855/- as unexplained money under Section 69A of the Income Tax Act in the hands of assessee.
The addition has been made on account of cash deposits found in the account of the assessee pertaining to specified bank notes during the period of demonetization. Aggrieved by the order the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)], who confirmed the addition made by the AO.
Further aggrieved the assessee filed an appeal before the Tribunal.
The Bench observed that Sheo Chand Yadav has a joint bank Account in Corporation Bank with his spouse Smt. Manju Yadav. Cash received from hawkers was credited in this joint account.
It was further noticed that the assessee has also submitted the details of all the sub-vendors along with their addresses and contact numbers. During the assessment proceedings, the AO had asked to furnish the cash summary which was duly submitted but the AO had not considered the facts of the case that the cash was available in the books of accounts out of the sale made before demonetization period.
The entire bank statement showing the cash deposit reflected the regular deposit of cash received from newspaper vendors throughout the year. The fact that the assessee is involved in the newspaper agency was also on record. The daily sale of newspapers of Economic Times, Navbharat Times, Times of India and sale of other newspapers at bus stand and other vends has been examined. Daily credit receipt and sale register were perused.
Therefore, the Two Member Bench comprising of Dr. B. R. R. Kumar, Accountant Member and Yogesh Kumar US, Judicial Member held that it has no vacillation to hold that the source of the cash deposited in the bank account has been undisputedly proved, and directed the deletion of the addition made by the AO.
Thus, the the appeal of the assessee was allowed.
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