Unexplained cash deposits in bank account were found genuine ...

Justified Cash Deposits & Business Income Deductions Upheld.

Case Laws     Income Tax

September 6, 2024

Unexplained cash deposits in bank account were found genuine based on evidence of sale of land agreement, disclosure in audited books, and statements from involved parties clarifying no actual cash transaction took place due to fund transfer within same bank branch. Addition made by Assessing Officer on presumption basis was decided in favor of assessee. Interest paid on funds invested in immovable properties and shares of other companies was allowed as deduction, treating them as productive assets related to assessee's business, following coordinate bench decision. Unaccounted sales receipts were explained by voluntary disclosure during search and annexure showing receipts already considered for gross profit, leading to deletion of addition as sale receipts stood explained. Contradictory observations by authorities regarding treatment of same receipts were rectified in assessee's favor.

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