Recorded sales and debtor realisations cannot be taxed as unexplained money or cash credits when supported by books and evidence.

A notice under section 143(2) issued in a format different from the CBDT-prescribed format did not, by itself, invalidate the assessment, so the procedural challenge failed. Cash receipts shown in the books as sales proceeds and debtor realisations, supported by invoices, stock records and purchase documents, could not be taxed as unexplained money under section 69A; the addition was deleted because the receipts were already recorded and taxing them again would amount to double taxation. For the same reason, the amounts could not be treated as unexplained cash credits under section 68, as they were not fresh credits but realisations from existing debtors. Relief was granted on the substantive additions.

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Issues: (i) Whether an assessment could be treated as void for the notice under section 143(2) being issued in a format different from the CBDT-prescribed format; (ii) whether cash receipts from recorded sales and debtor realisation could be taxed as unexplained money under section 69A; and (iii) whether such receipts could be taxed as unexplained cash credits under section 68.

Issue (i): Whether an assessment could be treated as void for the notice under section 143(2) being issued in a format different from the CBDT-prescribed format.

Analysis: The instruction prescribing a specific format for notice under section 143(2) was held to bind the income-tax authorities, but not the Tribunal. A technical deviation in the notice format, by itself, was not accepted as a ground to invalidate the assessment.

Conclusion: The challenge to the assessment on this ground was rejected.

Issue (ii): Whether cash receipts from recorded sales and debtor realisation could be taxed as unexplained money under section 69A.

Analysis: The receipts were found to arise from sales and realisation of debtors already recorded in the books, supported by invoices, stock records, purchase documents, and other material. Once the underlying transactions and book entries were accepted, the same receipts could not be treated as unrecorded money. The addition also amounted to taxing the same income twice.

Conclusion: The addition under section 69A was deleted in favour of the assessee.

Issue (iii): Whether such receipts could be taxed as unexplained cash credits under section 68.

Analysis: The credited amounts were held to be realisations from existing debtors and not fresh loans, advances, or unexplained credits. The books and surrounding documentary evidence established the source of the receipts, and no adverse material was brought to displace that explanation.

Conclusion: The addition under section 68 was deleted in favour of the assessee.

Final Conclusion: The assessment was not invalidated on the notice-format objection, but the substantive additions were unsustainable and were deleted, resulting in relief to the assessee.

Ratio Decidendi: Receipts shown in the books as sales proceeds or debtor realisation cannot be treated as unexplained money or unexplained cash credits when the underlying transactions and source entries are duly recorded and supported by evidence.

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