2022 (4) TMI 158

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....peal, by the assessee, is directed against the order of learned CIT(Appeals), national Faceless Appeal Centre (NFAC), Delhi, dated 18.08.2021, pertaining to the assessment year 2017-18. The assessee has raised following grounds of appeal: "1. The Assessment order passed by Assessing Officer is bad in law, is against facts and circumstances of the case, is again provisions of the Income Ta....

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....led his return of income declaring income of Rs. 7,86,040/- on 28.10.2017. The case of the assessee was selected for limited scrutiny under CASS to examine the issue of cash deposit during the year. The Assessing officer, during the course of assessment, issued a notice dated 26.11.2019 u/s. 142(1) of the Act to explain the cash deposit during the demonetization period in old currency notes and st....

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....April 2015 at Rs. 1,51,331/-. Thereafter in April 2016 the closing balance was Rs. 18,67,824/-. Learned counsel submitted that in October, 2016 the closing balance of cash was Rs. 9,77,796/-. Learned counsel submitted that the authorities below have grossly erred in making the addition without verifying the veracity of the contention of the assessee. 5. I have heard rival submissions and peruse....

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....ng the availability of cash with the assessee prior to the demonetization. If an assessee has cash available prior to demonetization and if he opted to deposit the same multiple times, there is no prohibition in law for such deposits. The fundamental question would be whether the assessee was having the explained cash which was deposited in his bank account. The Authorities below have not commente....