Cash Deposits Were Duly Recorded in NBFC’s Books: ITAT Deletes Rs. 14.84 Lakh Addition

The Income Tax Appellate Tribunal (ITAT) has deleted an addition of ₹14.84 lakh made by the Assessing Officer (AO), finding that the cash deposits in the Non-Banking Financial Company's (NBFC) books were duly recorded. The AO had likely made the addition based on suspicion or discrepancies related to the cash deposits. However, the ITAT, after reviewing the evidence and the NBFC's books of accounts, concluded that the deposits were properly accounted for and there was no basis for the addition made by the AO. This ruling highlights the importance of maintaining accurate and transparent financial records and underscores the appellate tribunal's role in scrutinizing assessments made by tax authorities to ensure they are based on factual evidence and proper application of tax laws.