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TMI Blog2023 (5) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... rk. All these evidences were there before the AO as well as the CIT(A) but they have brushed aside the same without examining the same and proceeded to make the addition. Since the cash deposit of demonetization currency by the assessee is duly explained the addition made by the AO and confirmed by the CIT(A) is not sustainable. Identical issue was decided in case of DCIT vs. Anuya Jayant Mhaiskar [ 2022 (8) TMI 438 - ITAT MUMBAI] and Nemchand Vasanji Chheda [ 2021 (7) TMI 1412 - ITAT MUMBAI] wherein it is held that when sufficient unutilized funds in the books are available with the assessee no addition can be made. So the closing balance or cash in hand with the assessee is certainly disclosed income and opening balance cannot be con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade for Rs. 10,00,000/- by the Ld. AO u/s 69A of the Income Tax Act, 1961 without appreciating that the appellant had duly proved the Source and Nature of the Source of the cash deposited during demonetization. The additions made are merely on assumptions which are not sustainable in law. d) The Learned CIT(A) has erred in stating that the appellant has not furnished supporting documentary evidence without considering that appellant has filed the copy of bank account, Trading and P L Account, Balance Sheet and Computation of Income. The same be considered and the additions be deleted e) The CIT(A) has failed to appreciate that the Ld. AO has made the additions on the assumption that the money deposited in Bank account is not recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds of appeal at the time of or before hearing 2. The assessee by filing an application sought to condone the delay of 04 days in filing the present appeal on the ground that she has received the order passed by the Ld. CIT(A) on 14.03.2022 through email, however, inadvertently the said email was received in spam hence could not be attended on time. But subsequently on verification of spam folder it was seen that the said order was received on 14.03.2022. From the reason stated by the assessee in her application for condonation of delay I find that this is a sufficient cause with the assessee being a small business women, she might not be conversant with the technicalities so the delay of 04 days is hereby condoned. 3. Briefly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Ld. CIT(A) by way of filing appeal who has confirmed the addition by dismissing the appeal. Feeling aggrieved assessee has come up before the Tribunal by way of filing present appeal. 5. I have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto. 6. Undisputedly, the assessee being into the business of beauty parlor and tuition work deposited demonetization currency notes of Rs.10,00,000/-. It is also not in dispute that the assessee has offered income under section 44AD at 8% on cash receipts. It is the case of the assessee tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he times. From the income and expenditure account available at page 8 9 of the paper book which is for A.Y. 2016-17 and 2017-18 wherein closing balance with the assessee i.e. cash in hand was Rs.13,20,364/- and in A.Y. 2017-18 the year under consideration the assessee has cash in hand of Rs.9,73,500/-. Even in the next assessment year i.e. 2018-19 the assessee s cash deposit of Rs.8,00,000/- has been admitted by the Revenue itself. 9. In view of above evidence, I am of the considered view that the assessee has duly explained the cash in hand having been collected from her beauty parlor business and tuition work. All these evidences were there before the AO as well as the Ld. CIT(A) but they have brushed aside the same without examining ..... X X X X Extracts X X X X X X X X Extracts X X X X
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