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TMI Blog2023 (5) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... as also been considered by the assessee when preparing the income and expenditure account for the relevant assessment year. When the amount has already been considered when preparing its return of income for the relevant assessment year, to treat the cash deposit in the bank as unexplained income of the assessee is nothing but double addition, which is not also permissible. In these circumstances, on account of both the above mentioned reasons, it is held that the addition as made by the AO and confirmed by the CIT(A) is unsustainable and consequently, same stands deleted. Appeal of the assessee stands allowed. - ITA No.44/CTK/2023 - - - Dated:- 26-4-2023 - Shri George Mathan, Judicial Member For the Assessee : Shri Mohit Sheth, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer. The books of account produced before the Assessing Officer has also not been disturbed nor rejected. Ld AR submitted that as the cash book has not been disturbed and as the assessee has adequate opening cash balance as on the beginning of the relevant assessment year and also as on 1.11.2016 to make the cash deposit in the bank account, the addition cannot be made as unexplained income of the assessee. He relied upon the decision of the Co-ordinate Bench of Delhi Tribunal in the case of Perminder Kaur Matharoo vs ITO in ITA No.840/Del/2021 order dated 15.11.2022, wherein, it has been held that once the cash flow statement is not controverted by the Assessing Officer as well as the ld CIT(A) and when it was specifically s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that such submission has never been given by the assessee. Ld Sr DR further drew my attention to second paragraph of the assessment order, wherein, the assessee has mentioned that cash deposit of Rs.46,50,000/- represents the Hundi collections before and during the period. Ld Sr DR further drew my attention to the order of the ld CIT(A) at page 8 para 7.2 to submit that the ld CIT(A) had called for the returns of income for periods two years prior to the year of demonetization and two years subsequent to the same and the assessee has only produced the returns for the assessment years 2016-17 2017-18, which were filed simultaneously. It was the submission that the circumstances under which the cash has been deposited should be co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lability as mentioned in the cash book cannot be treated as unexplained income of the assessee. Even otherwise, what is to be considered and -clearly understood is that when preparing the income and expenditure account, receipts of the assessee has been fully considered in preparing the income and expenditure account. Consequently, Rs.46,50,000/- which has been deposited in the bank account has also been considered by the assessee when preparing the income and expenditure account for the relevant assessment year. When the amount has already been considered when preparing its return of income for the relevant assessment year, to treat the cash deposit in the bank as unexplained income of the assessee is nothing but double addition, which is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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