TaxTMI 
TaxTMI 
2022 (9) TMI 1183
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....ne the delay of 85 days in filing of appeal by the assessee. Accordingly, the appeal of the assessee is admitted for adjudication. 3. The ground No. 1 & 5 raised by the assessee are general in nature and does not require any specific adjudication. 4. The ground No. 2 raised by the assessee is challenging the action of the ld. CIT(A) in confirming the addition made in the sum of Rs.2,48,87,000/- being Specified Bank Notes deposited in the bank account of the assessee, in the facts and circumstance of the case. 4.1. We have heard rival submissions and perused the materials available on record. We find that the assessee is engaged in the business of freight forwarding for handling perishable, general and time sensitive cargo and handling general and other kinds of cargo. The ld. AO observed that the assessee had credited to the profit and loss account revenue from operations of Rs.216,71,91,519/- and other income of Rs.5,57,018/-, after debiting various expenses, total income of Rs.5,86,67,830/- is declared in the revised return of income filed on 04/11/2017. The ld. AO observed that assessee had deposited a sum of Rs.2,48,87,000/- in Specified Bank Notes (SBN in short) durin....
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....ntal to the transportation of the cargo apart from earning agency commission from its customers. It was also submitted that freight paid to airlines has a credit period of one month, accordingly, the assessee accords credit of one month in relation to the said charges to its clients. However, assessee receives cash from some of its clients for meeting daily charges for handling their cargo which included loading and unloading, Barai and other ancillary expenses connected to transportation of cargo. It was also pointed out that the cash received for this purpose is expended for incurring the aforesaid expenses, however, consequent to demonetisation the cash collected from customers could not be utilised for the business purposes and remained to be expended at various site offices where this cash was received. Therefore, the same was deposited by the assessee in various bank accounts at different branches and further expended for the very same purpose i.e. incurring of various operational expenses of clients by subsequent withdrawals in cash. The details of various cash deposits made and cash expenses incurred were duly furnished before the ld AO. The assessee submitted the cash book....
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....ake confirmation for sell rate from Customer. iii. After final confirmation is received from Exporter for execution of shipment, assessee block space with respective Airline base on Export invoice copy & packing List. iv. Once customer shipment has been approved, assessee have to do AD code registration of Exporter with Approval of custom officer. v. The assessee have to arrange Transportation service from exporter warehouse to cargo terminal, where assessee have to pay cash to Truck Driver for Diesel Expenses & trip Expenses of the Driver. vi. To transport cargo from customer warehouse, assessee have to pay Mathadi workers (Hamal or Loader) to load cargo in vehicle. Mathadi workers (Hamal or Loader), take cash payment per truck which includes Loading & Varai Charges (Unloading Charges). vii. Once cargo reach at cargo terminal, assessee have to unload cargo at our warehouse. For that, assessee have to pay unloading charges in cash per truck & plan other activity related to shipment. • GSP or COO certificate is mandatory for US countries. • Phyto certificate required to meet phytosanitary import requirement. ....
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....as been making deposits in bank throughout the year in the bank account. Since remaining balance of the amounts withdrawn from bank after meeting its business expenses that were lying with the assessee had lost its validity of being classified as a legal tender pursuant to announcement of demonetisation policy by the Government of India, the assessee had no choice but to deposit the cash available with it both in the form of cash surplus withdrawals and also the cash received from customers in the designated bank account in Specified Bank Notes during the period 09/11/2016 to 31/12/2016. All cash that has been deposited in Specified Bank Notes during the demonetisation period i.e.09/11/2016 to 31/12/2016 cannot be classified as unexplained income of the assessee. What is to be seen is as to whether the assessee had sufficient cash balance in its books for making the said deposits in the bank account. In the instant case, we find that assessee had sufficient cash balance in its books which is evident from the cash book filed by the ld. AR before us. From the perusal of the said cash book, we find that there is no negative cash balance on any day during previous year much less prior ....
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....see vide submission dated 27/11/2019 filed a copy of agreement in respect of purchase of the said property situated at 702, Pramukh Plaza. This agreement was entered for purchase of property on 31/03/2017. The ld.AO vide notice u/s.142(1) of the Act dated 07/12/2019 asked the assessee to explain why depreciation amounting to Rs.28,36,500/- on the said immovable property should not be disallowed as only agreement for purchase of property was entered into and only part payment was made during the year. In response to the said notice, the assessee explained that it had entered into an agreement for purchase of property as on 31/03/2017 and the property was registered in the name of the company on 06/04/2017 i.e. within six days from the agreement date. The assessee already had a physical possession of the property as the same property was taken on rent by it immediately prior to the date of purchase. As per the agreement, the assessee company shall continue to remain in physical possession of the property and the vendor was also to deliver the juridical possession of the property to assessee company on the execution of the said agreement on 31/03/2017. The assessee relied on Section 2....
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....r officer within four months from the date of its execution: Provided that a copy a of a decree or order may be presented within four months from the day on which the decree or order was made, or, where it is appealable, within four months from the day on which it becomes final." Section 47 in The Registration Act, 1908 "47. Time from which registered document operates.-A registered document shall operate from the time which it would have commenced to operate if no registration thereof had been required or made, and not from the time of its registration." 5.3. From the perusal of the aforesaid provisions it could be seen that the sale deed has been registered in the name of the assessee before six months from the date of execution of the agreement, hence, effectively the ownership relates back to the date of agreement to the assessee. It is not in dispute that assessee was enjoying the physical possession of the property even prior to the date of agreement as a licensor. Pursuant to entering the agreement the assessee became the beneficial owner of the said property. In this regard, we have no hesitation in placing reliance on the decision of the Hon'ble Suprem....