Cash Deposits cannot be Doubted if Return Filed U/s 44AD
In a recent case, AO found large cash deposits during demonetisation and treated it as unexplained. Source of such deposits was submitted as cash sales, however sufficient documentary evidences in this regard cannot be furnished since assessee filed return in presumptive scheme u/s. 44AD.
The Hon’ble ITAT appreciated our submissions that the assessee was not required to maintain books of accounts as per S.44AD and hence, cash deposits cannot be doubted more so when most of the sales are made in cash and turnover declared u/s. 44AD is greater than such cash deposits.
The copy of the order is as under:
