2017 (8) TMI 1539

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s. Seven Seas Marketing. The assessee was asked to file confirmed copy of accounts of Doon Liquors with documentary evidence in respect of source of investment of Rs. 25 lakhs in cash. Similarly, regarding investment in M/s. Seven Seas Marketing amounting to Rs. 15 lakhs made in cash during the year and assessee was asked to file evidence. The assessee did not file evidence of source of investments in cash. The assessee was again requested to produce Principal Officers/Members of AOPs in which assessee was one of the Member with their books of account. The A.O. ultimately made addition of Rs. 25 lakhs and Rs. 15 lakhs and computed the income of the assessee at Rs. 49,85,610. 3. The assessee challenged the additions before the Ld. CIT(A).....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ash is required for depositing the same with the Government for obtaining the licence. Therefore, assessee was having reasonable cause for taking cash. Accordingly, the penalty was cancelled and the appeal of assessee has been allowed. 6. After considering the rival contentions I do not find any merit in the departmental appeal. The Hon'ble Supreme Court in the case of CIT vs. Jai Laxmi Rice Mills (2015) 379 ITR 521(SC) held as under : "For the assessment year 1992-93, the assessment order was passed on the assessee on February 26, 1996, ex-parte. While framing the assessment, the Assessing Officer observed that the assessee had contravened the provisions of section 269SS of the Income-tax Act, 1961, and because of this the Asse....