SULTANALI RASHIDA,CHENNAI vs. ITO , NON CORPORATE WARD 15 (3) , CHENNAI

Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 11-11-2022 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 21-12-2019.

The only grievance of the assessee is confirmation of addition of Rs.5 Lacs which represent cash deposited by the assessee on various dates during demonetization period as tabulated in para-5 of the assessment order. The assessee made aggregate deposit of Rs.6 Lacs. Upon analysis of the cash book for F.Y 2016-17, Ld. AO did not accept the opening cash balance for Rs.2.27 Lacs and reduced the - 2 - same to Rs.1.00 Lacs. Further, the receipts of other income of Rs.3 Lacs as reflected by the assessee in the return of income were not accepted as source of cash and addition of Rs.5 Lacs was confirmed. The Ld. CIT(A) endorsed the view of Ld. AO against which the assessee is in further appeal before us.

I find that the assessee as reflected other income of Rs.3 Lacs in the return of income which has been accepted by Ld. AO. Therefore, there is no reason to reject the same. The rejection of opening cash balance is also not justified since the same is carried over from earlier years. Therefore, the impugned addition is not sustainable. I direct Ld. AO to delete the same.

The appeal sand allowed.