Income Tax

Addition for cash deposit upheld for absence of cash flow statement/cash book

Addition for cash deposit upheld for absence of cash flow statement/cash book 

ABCAUS Case Law Citation
ABCAUS 3633 (2023) (01) ITAT

In the instant case, the assessee had challenged the order passed by the CIT(A) in confirming addition made on account of cash deposit in bank as cash credits under section 68 of the Income Tax Act, 1961 (the Act).

The case of the assessee was reopened for scrutiny assessment on the basis of AIR information that assessee had purchased immovable  property.

During the course of the assessment proceedings it was  noticed by the Assessing officer that assessee had deposited large amount of cash in bank accounts.

The Tribunal observed that the cash deposits were stated to be  out of past savings. However, no cash flow statement/cash book was filed. Even before the Tribunal no such evidence was been  filed. 

Therefore, for the absence of relevant evidence, the ITAT declined to interfere with the finding of authorities below and dismissed the appeal of the assessee.

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