TaxTMI 
TaxTMI 
2020 (11) TMI 703
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....nd weight of evidence, natural justice, facts and circumstances of the case. 2. The appellant denies himself liable to be assessed to an income of Rs. 35,40,260/- against the returned income of Rs. 2,13,820/- on the facts and circumstances of the case. 3. The learned CIT(A) was not justified in law and on facts, in failing to admit the additional evidence filed, which was not filed during assessment proceedings, due to reasonable cause, on the facts and circumstance of the case. 4. The learned CIT(A) was not justified in law and on facts in appreciating that the appellant has filed replies in respect of the cash deposited during demonetization and the same ought to have been considered while passing the order of a....
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....6 to 30.12.2016 in his bank account with Axis Bank. Accordingly, notice u/s 142(1) of the I.T.Act was issued to the assessee. During the course of assessment proceedings, bank statement of the assessee with Axis Bank was called for u/s 133(6) of the I.T.Act. Upon analysis of the bank statement, it was found that the assessee had total cash deposit of Rs. 35,40,260 during the financial year 2016-2017 and cash deposit of Rs. 11,26,000 during the demonetisation period. The A.O. had issued numerous notices u/s 142(1) of the I.T.Act, calling for the details of the cash deposits made. However, there was no reply or explanation to the above notices. In the absence of any reply or explanation forthcoming from the assessee, the Assessing Officer ....
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....der of the assessment u/s 144 of the I.T.Act, the assessee preferred an appeal to the first appellate authority. Before the first appellate authority, the assessee filed additional evidence in the form of confirmation letters from bank for transfer of funds to M/s.Ashirwad Sheet Grah Cold Storage and M/s.H.L.Jain Ice and Cold Storage, etc. It was submitted that the assessee was an illiterate person and was unaware of the provisions of the Income-tax Act, 1961. It was stated that the cash deposits are out of normal course of purchase and sale of agricultural produce that is undertaken by the assessee. It was further stated that the cash deposits made during the demonetisation period were immediately transferred to NEFT to M/s.Ashirwad Sheet ....
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.... the assessment order u/s 144 of the I.T.Act for assessment year 2017-2018 was completed on 25.09.2019. Further, the learned AR brought to my notice Form 26AS for assessment years 2018-2019 and 2015-2016 and contended that the cash deposits for assessment years 2018-2019 and 2015-2016 clearly show that the assessee was regularly doing the business of commission agent and trader for agricultural produce. Therefore, it was prayed in the interest of justice and equity, one more opportunity may be granted to the assessee to prove his case that the cash deposits are not undisclosed income warranting addition to the total income u/s 69A of the I.T.Act. Alternatively, it was contended that only a percentage of the total cash deposit of Rs. 35,40,2....
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....ment of the learned AR that the assessee is a commission agent / trader of agricultural produce in APMC Market. This can be borne out from the fact that large payments are made from assessee's bank account to M/s.Ashirwad Sheet Grah Cold Storage and M/s.H.L.Jain Ice and Cold Storage. The above two entities are stockiest for agricultural produce. If the assessee's contention that he is a commission agent / trader of agricultural produce is true, then there could be frequent cash deposits and withdrawals on account of sale and purchase of agricultural produce. The A.O. in the impugned assessment order states as follow:- "9. .........There are frequent cash deposits during the year. Immediately after the deposits, payments are made to....