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Issues involved: Appeal against the order of CIT(A) for assessment year 2002-03 regarding deletion of addition on account of cash "loan" and unexplained cash deposit in bank account, and unexplained expenditure.
Issue 1 - Deletion of addition on account of cash "loan": The revenue appealed against the deletion of Rs. 1,90,000 addition on the basis of cash "loan" in the assessee's books. The revenue argued that the evidence furnished before the CIT(A) were afterthought and lacked evidentiary value. The assessee, a lady proprietor, explained that due to her husband's illness and subsequent death, she was unable to provide details earlier. The CIT(A) called for a remand report, where all loan creditors affirmed the amounts advanced to the assessee. The AO did not doubt the genuineness of the credit but questioned the delay in furnishing details. The Tribunal upheld the CIT(A)'s decision, considering the reasonable cause for the delay due to the husband's death and shock, and the subsequent furnishing of complete details during the proceedings. Issue 2 - Unexplained cash deposit in bank account: The revenue challenged the deletion of Rs. 2,52,000 addition on account of unexplained cash deposit in the bank account. Discrepancies between the original and revised cash books were noted, leading to the addition by the AO. The revised cash book, supported by an affidavit from the accountant taking responsibility for the mistake, was accepted by the CIT(A) and upheld by the Tribunal. The Tribunal found no defects in the revised cash book during the remand proceedings, leading to the deletion of the addition. Issue 3 - Unexplained expenditure: The revenue contested the deletion of Rs. 3,804 addition on account of unexplained expenditure based on the recasted cash book. Similar to the previous issue, discrepancies in the original and revised cash books were resolved in favor of the revised version. The Tribunal upheld the CIT(A)'s decision to delete the addition, as there was no negative cash balance in the revised cash book. In conclusion, the Tribunal dismissed the revenue's appeal, upholding the CIT(A)'s decisions regarding the deletion of additions related to cash "loan," unexplained cash deposit, and unexplained expenditure.
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