S. 68: Cash credits-Cash deposited-Demonetisation-Explained the source-Explanation cannot be rejected on the ground of after thought -Addition is deleted.
Assessee deposited high demonetisation notes. Gave explanation that source being cash in hand and repayment by sundry debtors in cash. AO refused explanation on ground that debtors were unverifiable. On appeal the CIT(A) affirmed the order of the Assessing Officer. On appeal the Tribunal held that, the assessee is doing moneylending in cash since several years and financial statements support this fact. ⁠Interest received in cash from debtors has been consistently shown and accepted in earlier years as well as this year. The financial statements of earlier two years clearly demonstrate availability of cash balances arising from interest and sundry debtors. ⁠Thus this explanation cannot be treated as an after thought. Tribunal also held that when the assessee has filed overwhelming evidence demonstrating availability of cash in hand and it’s source, the same cannot be rejected on grounds of afterthought . Addition is deleted. (ITA No 733/Chny/2024 dt. 12-8-2024) (AY. 2017-18 )
Gouthamchand Jain v. ITO (Chennai)(Trib.) www.itatonline.org
(Coram: Hon’ble Shri Mahavir Singh, Vice President and Hon’ble Shri Manoj Kumar Aggarwal, Accountant Member)