TaxTMI 
TaxTMI 
2019 (6) TMI 300
X X X X Extracts X X X X
X X X X Extracts X X X X
....asons of cash deposit for demonetization period. As per information available with the A.O, during the demonetization period from 09.11.2016 to 30.12.2016, assessee had deposited cash amount in his bank accounts mentioned in para 3.1 of the assessment order i.e., Rs. 8,49,000/- in Bank of Maharashtra, Palam Vihar, Gurgaon, Rs. 9,49,000/- in Syndicate Bank, Kashmiri Gate, Delhi and Rs. 10,49,000/- in Andhra Bank, Palam Vihar, Gurgaon. The assessee explained source of Rs. 8,49,000/- out of earlier years income and remaining cash were explained to be retail sales made during the year. The A.O. in order to verify cash deposit of Rs. 8,49,000/- out of earlier year's income, issued show cause notice to the assessee. The assessee filed copy of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....section 68 of the I.T. Act. The A.O. after considering the reply of the assessee noted that assessee has submitted his balance-sheet for the year under consideration which proved that assessee has maintained his books of account, therefore, addition could be made under section 68 of the I.T. Act, 1961. The A.O. treated the same as unexplained cash credit in the shape of bogus sales and addition of Rs. 15 lakhs was accordingly made. 3. The addition was challenged before the Ld. CIT(A). The assessee also pleaded that A.O. was not justified in making addition of Rs. 15 lakhs because this figure has been adopted from assessee's submissions. At the most, if at all any addition is to be made, it could be made to the extent of cash in hand claime....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rtners was rejected. Unless and until the explanation offered by the firm was rejected and was found not genuine, the Assessing Officer could not invoke the provisions of section 68. The addition could not be made." 4.1. He has referred to PB-7 which is balance-sheet ending on 31.03.2015 in which cash in hand of Rs. 11,22,090/- have been shown. He has further submitted that balance-sheet is prepared on estimate basis without any maintenance of books of account. He has submitted that in subsequent A.Y. 2016-2017, A.O. has accepted the returned income under section 143(1) in which also assessee has declared income at Rs. 9 lakhs under section 44AD of the I.T. Act. Copy of the same is filed on record. He has, therefore, submitted that there....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e and that no books of account have been maintained, there is no question of considering it to be cash credit. The Ld. CIT(A) did not accept the view of the A.O. and on the basis of copy of the balance-sheet filed at assessment stage, taken the amount of cash in hand of Rs. 11,22,090/- and made the addition. Copy of the balance-sheet is filed at page-7 of the paper book. In the liability side, assessee has shown capital account of Rs. 20,28,123.75 ps. On the other side i.e., assets, assessee has shown investment, current asset, cash and bank balances, which also tally with the same amount of Rs. 20,28,123.75 ps. This figure includes cash in hand of Rs. 11,22,090/-. If the figure of Rs. 11,22,090/- is taken-out of assets side, it would not ....