No addition u/s 69A for cash deposits during demonetization if the same is routed through regular books of account of assessee which was not rejected by AO: Chandigarh ITAT
Chandigarh Bench of ITAT in the case of Smt. Tripta Rani versus The ACIT has held that no addition u/s 69A of the Act shall be made where cash deposits made in bank accounts of proprietorship concern during demonetization period were routed through regular books of account of assessee which were not rejected by AO and no incriminating material was found during search conducted at premises of sister concern of assessee to point out that assessee introduced her own unaccounted money in her proprietorship concern in garb of sale to its sister concern, additions made by AO in respect of such cash deposit were without any foundation and were merely based on surmise and conjectures and, thus, same were to be deleted.
Assessee also raised the additional ground in this case that assessment as framed by the Assessing Officer deserves to be quashed since “Mandatory Approval” as given by the Ld. Addl. CIT u/s 153D is without any application of mind and being a ‘Mechanical Approval” only, the assessment as framed by the Assessing Officer at an income of Rs. 20,30,070/- deserves to be quashed, the same additional ground was accepted by the ITAT Bench. ITAT bench of Chandigarh opined that as far as the assessee’s legal ground challenging the validity of assessment proceedings for want of valid approval u/s 153D of the Act is concerned, we are not inclined to go into this issue at the present moment as we have allowed complete relief to the assessee on the merits of the case and this additional ground has become academic in nature. Accordingly, this ground is dismissed as having become infructuous.
The copy of the order is as under:
