The AO taxed cash deposited in bank as undisclosed income of the assessee. The Tribunal held that, the AO did not doubt the availability of the opening balance with the assessee. He had not brought anything on record to show that opening balance was utilized somewhere else. In fact he himself accepted the cash deposit of Rs. 15 lakh from the opening balance and doubted the balance deposit of Rs. 26.55. Additions were made only on the ground that wealth tax returns were not filed. The tribunal held, that no addition can be sustained. (AY .2011-12)
Rajinder Singh v. ACIT (2018) 63 ITR 550 (Delhi)(Trib.)
S. 68 : Cash credits – cash deposited in bank – Held, opening balance was no doubted – Held, nothing to show that opening cash balance was utilized somewhere else – Held, accepted part deposit out of the said balance and only part not accepted. Held, addition not justified.