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TMI Blog2021 (9) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... as unexplained money when the AO found money, bullion, jewellery or other valuable article and the assessee offers no explanation to the satisfaction of the AO. In the instant case, the source of cash deposited by the assessee in the bank account was duly explained by the assessee and the same was duly accounted in the books of accounts. Thus, there is no case for making addition u/s 69A In the instant case there is no doubt that the assessee has recorded the sales in the books of accounts and the deposits were made out of the cash balances available in the cash book. The assessee produced the books of accounts and no defects were found by the AO. Therefore the case of Karthik constructions [ 2018 (3) TMI 39 - ITAT MUMBAI] squarely app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeds of business transactions as the assessee is in retail trade of gold jewellery and silver articles. The assessee further submitted before the AO that the cash deposits were duly reflected in the books of accounts. The AO suspected the source of cash deposit and further called for the explanation with regard to specific bank notes (SBN) made during the demonetization period. The assessee explained that a sum of ₹ 59,00,000/- was withdrawn from the bank account on various dates from 01.11.2016 to 07.11.2016 for utilization of the same in construction of new show room in Vizianagaram. Due to demonetization, the cash withdrawn from the bank account could not be utilized and the same was deposited in the bank account. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank during post demonetization and the same appeared satisfactory. Further, the Ld.CIT(A) found that the assessee has maintained the regular books of accounts and has accounted the cash sales in the books of accounts and the books of accounts shows the cash balance equal to the amount deposited in the bank. Hence, the Ld.CIT(A) held that once the bank account is duly recorded in the books of accounts and the source of cash deposit was explained, the question of making the addition u/s 69A does not arise. The Ld.CIT(A) relied on the decision of coordinate bench of ITAT Mumbai in the case of Karthik Constructions in ITA No.2292/Mum/2016 dated 23.02.2018 and held that the addition made by the AO is not sustainable, accordingly deleted the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts and the books of accounts were produced before the AO, but no defect was found by the AO. Thus, the source of the deposit of ₹ 74,90,000/- duly explained by the assessee as sales and accounted in the books of accounts. The AO made the addition u/s 69A. As per section 69A, it is deemed to be income of the assessee as unexplained money when the AO found money, bullion, jewellery or other valuable article and the assessee offers no explanation to the satisfaction of the AO. In the instant case, the source of cash deposited by the assessee in the bank account was duly explained by the assessee and the same was duly accounted in the books of accounts. Thus, there is no case for making addition u/s 69A of the Act. The Ld.CIT(A) relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns were issued two persons actually appeared before the Assessing Officer and were examined. The Assessing Officer accepted the unsecured loan taken from one such person to be genuine while holding the loans taken from other persons to be non genuine doubting the creditworthiness of the concerned parties on the basis of income declared by them in the impugned assessment year. Thus, as could be seen from the facts on record, the existence of the creditors have been established. Moreover, when the unsecured loans were not taken in the impugned assessment year but were taken in earlier assessment years wherein the genuineness of such loans were never questioned, it cannot be questioned in the impugned assessment year. Therefore, the only thin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we uphold the order of the learned Commissioner (Appeals) by dismissing the ground raised. 7. In the instant case there is no doubt that the assessee has recorded the sales in the books of accounts and the deposits were made out of the cash balances available in the cash book. The assessee produced the books of accounts and no defects were found by the AO. Therefore the case of Karthik constructions squarely applies to the case of the assessee and hence, respectfully following the view taken by the coordinate bench of ITAT, we find no reason to interfere with the order of the Ld.CIT(A) and the same is upheld. The appeal of the revenue is dismissed. 8. The assessee filed cross objections supporting the order of the Ld.CIT(A). Sin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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