ANKIT KEDIA,BANKURA vs. ITO, WARD 3(1), BANKURA,Q, BANKURA

Brief facts of the case are that, during the year under consideration, the case of the Assessee was selected for scrutiny under CASS. It is found by the Assessing Officer that Assessee has deposited a sum of Rs.11,43,000/- during the demonetisation period. An Assessment Order came to be passed on 16.12.2019 by making an addition of Rs.6,40,000/- u/s 69A of the Act on account of cash deposited in the bank account. Aggrieved by the Assessment Order

The Learned Counsel for the Assessee vehemently submitted that, Assessee has proved the source of cash deposits made during the demonetisation period which were out of cash balance as per cash book as on 08.11.2016 amounting to Rs.9,24,887.69/- and partly out of withdrawal of Rs.7,50,220/- from the Assessee’s business balance sheet during the year, which were duly recorded in the Assessee’s regular books of account. In order to substantiate the source of cash deposits, Assessee produced audited books of account, cash book and relevant ledgers which were duly furnished during the course of the assessment proceedings. The Ld. AR further contended that the Ld. CIT(A) committed grave error in ignoring the fact that the cash deposits were made out of salesmade during the year and also from the withdrawals from bank account and the said income has already been offered for taxation. The Ld. AR has taken us through the Cash Book, Audit Report, letter from bank produced in the Paper Book and other documents, sought for deletion the addition made by the Assessing Officer.

We have heard the parties and perused the material available on record. Assessee is a wholesale and retail seller of grocery. During the demonetisation period, Assessee made total cash deposits of Rs.11,43,000/-. The Ld. Assessing Officer out of the total cash deposits, made addition of Rs.6,40,000/- wherein Assessing Officer has not doubted the business of the Assessee. In order to prove the source of the cash deposited by the Assessee, Assessee has produced cash book, audited books of account and relevant ledgers before the Assessing Officer and contended that the cash deposited to the bank is out of cash in hand and past withdrawals and claimed that the source of the said money is out of cash sales. It is found that as per the balance sheet and cash book as on 08.11.2016, the Assessee was having cash balance of Rs.9,24,887.69/- and Assessee has also withdrawn the cash of Rs.7,50,220/- in the past. It is a specific case of the Assessee that the cash were deposited out of the cash in hand and partly out of withdrawn and contended that the impugned addition will amounts to double taxation. Considering the quantum Page | 3

In the result, Appeal of the Assessee is allowed.