Tribunal rules in favor of appellant exempting transactions at petrol stations during demonetization period

The Tribunal allowed the appeal, ruling in favor of the appellant based on the exemption provided under the Gazette Notifications for transactions at authorized petrol stations during the demonetization period. The order was pronounced in open court on 7th March, 2023, at Chennai.

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Issues:
The appeal is time-barred by 95 days due to strained relationship between the appellant and her husband, leading to delay in filing the appeal.

Delay Condonation Issue:
The appeal was filed 95 days late due to strained relationship between the appellant and her husband, affecting her ability to focus on business and litigation matters. The appellant requested condonation of delay, citing reasons of marital discord and health issues. The Tribunal, after considering the reasons provided and lack of evidence to the contrary, condoned the delay of 95 days and admitted the appeal in the interest of justice.

Assessment Issue:
The main issue in the appeal pertains to the addition of cash deposits made during the demonetization period of Specified Bank Notes (SBNs), as confirmed by the CIT(A) in the assessment order. The appellant argued that the authorities erred in not considering written submissions and violated principles of natural justice.

Assessment Details:
The appellant, an authorized dealer of Bharat Petroleum Company Ltd., deposited SBNs amounting to Rs.73,61,500/- during the demonetization period. The AO added an additional amount of Rs.4,95,000/- as unexplained cash deposit under section 69A r.w.s. 115BBE of the Income Tax Act, 1961. The appellant contended that the cash deposits were exempted under Gazette Notifications issued by the Ministry of Finance, allowing transactions at authorized petrol stations with demonetization notes until 31.12.2016. The Tribunal noted that the appellant's cash receipts were based on the sale of petrol, which was exempted under the notifications, and therefore deleted the addition, allowing the appeal.

Conclusion:
The Tribunal allowed the appeal, ruling in favor of the appellant based on the exemption provided under the Gazette Notifications for transactions at authorized petrol stations during the demonetization period. The order was pronounced in open court on 7th March, 2023, at Chennai.

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