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TMI Blog2022 (6) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... igmy deposit collections have been shown as liability. Hence there is merit in the contentions of Ld A.R that there was no reason for the tax authorities to treat the amounts deposited into the bank account as revenue receipts in the hands of the assessee. When the deposits have been made out of book balances, there is no reason to estimate income there from. Accordingly, I set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the addition relating to income estimated out of deposits made into the bank account, which was sustained by Ld CIT(A). Appeal of assessee allowed. - ITA No.629/Bang/2021 - - - Dated:- 7-4-2022 - SHRI B. R. BASKARAN, ACCOUNTANT MEMBER Appellant by: Shri B.S. Balachandran, A.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2,71,840/-. Since the assessee had declared income of Rs.70,507/- in its return of income, the A.O. assessed the difference amount of Rs.2,01,333/-. 3. Before Ld. CIT(A) the assessee submitted that the demonetization period started from 9.11.2016 and the assessee was having cash balance of Rs.6,62,852/- in its books of accounts. Further, it was submitted that the remaining cash balance represented amount collected by way of pigmy deposits from its customers. Accordingly, the assessee submitted that it is maintaining regular books of accounts; pigmy deposits have been shown as liability and the deposits have been made into the bank accounts out of book balances only. Accordingly, it was submitted that the A.O. was not correct in treating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come thereon. 6. The Ld D.R, on the contrary, supported the order passed by Ld CIT(A) on this issue. 7. I heard the parties on this issue and perused the record. Before me, the assessee has produced copies of Balance Sheet and Profit and Loss account filed along with the return of income. Thus, I notice that the tax authorities have fell in error in observing that the assessee has declared its income on presumptive basis. Further, the Ld A.R submitted that the collection of pigmy deposits from customers and the money deposited into the bank accounts have been duly accounted for in the books of accounts. Thus the sources for deposits made into the bank accounts are very much available in the books of accounts itself. 8. The very fac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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