TaxTMI 
TaxTMI 
2022 (8) TMI 1033
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....d the addition of Rs.3,70,500/- out of total addition of Rs.43,70,500/- which the Assessing Officer had made on account of deposits in bank. The Learned counsel for the assessee, explaining the facts of the case, submitted that the assessee is an individual and is engaged in Sarafa business and during the course of assessment proceedings the Assessing Officer observed that the assessee had deposited an amount of Rs.43,70,500/- in the demonetized currency between the period 09/11/2016 to 30/12/2016. The assessee was questioned about the deposits in cash in the demonetized currency and in reply the assessee submitted that the same was represented by cash sales and there was an opening balance of Rs.3,86,779/- as on 01/04/2016 and during the p....
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....which is not justified as learned CIT(A) has not cited any other specific reason for confirming the part addition and therefore, it was prayed that the addition sustained by learned CIT(A) be deleted. 3. Learned D. R., on the other hand, submitted that it is undisputed fact that the cash sales of the assessee had increased manifold during the period of demonetization and he had deposited the cash in the bank account out of demonetized money and therefore, learned CIT(A) has wrongly allowed the relief and in fact he should have confirmed the entire addition. It was submitted that learned CIT(A) has already allowed substantial relief therefore, there is no merit in filing the appeal by the assessee which may be dismissed. 4. We have heard t....
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....cloud to the reasonable satisfaction of the assessing authorities to hold that the amount represented income from some undisclosed source. In this case, provisions of Section 69A of I T Act, 1961 are clearly attracted." 4.1 The learned CIT(A), on the other hand, after going through the extensive submissions made by the assessee, allowed the assessee substantial relief of Rs.40 lacs by holding that the cash deposits in the bank account were represented by the sales made by the assessee and the Assessing Officer had accepted the claim of sales made by the assessee and therefore, since the Assessing Officer has accepted the sales made by the assessee, the rejection of the explanation of the assessee regarding source of these cash deposits is....
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....e appellant has already disclosed profit on these sales. 4.7 The entire addition has been made by the AO on presumption and on 'preponderance of probability' and not on evidence. Though preponderance of probability is an accepted principle to judge reliability of evidences as held by the Hon'ble Courts in plethora of cases but its application in judging the quality evidences should be done in a reasonable manner. The above action of the AO is not reasonable as he was not able to point any defect in the books of account or sales of the appellant. When as per the submission of the appellant sales are the sources of these cash deposits in SEN then some inquiries on sales claimed by the appellant ought to have been done by the AO....