TaxTMI 
TaxTMI 
2022 (11) TMI 407
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....at the assessee is a company engaged in the business of dealer in pulses, food grains and manufacturer of besan. It filed its Return of Income on 2.11.2017 declaring total income of Rs.17,09,470/-. The case was selected for scrutiny under CASS and statutory notices were issued u/s. 143(2) and 142(1) of the Income Tax Act, 1961 (in short 'the Act') to the assessee to furnish certain information. 3. During the course of assessment proceedings, the Assessing Officer observed from the Bank account of the assessee maintained with the ICICI Bank that the assessee has made cash deposits of Rs.2,10,80,000 during the demonetization period. He, therefore, asked the assessee to explain the source for the cash deposits. It was explained that the sou....
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.... % July 2015 37,10,741 July 2016 50,65,395 36 August 2015 31,42,464 Aug., 2016 58,52,523 86 Sept., 2015 41,97,344 Sept., 2016 57,24,110 36 Oct., 2015 19,53,192 Oct., 2016 56,15,706 188 Nov., 2015 47,12,257 Nov., 2016 113,67,967 141 Dec., 2015 68,25,610 Dec.,2016 87,08,625 28 Total 2,45,41,608 Total 4,23,34,326 72 He further noted that the assessee has made cash sales to unidentifiable persons and failed to prove the genuineness of the sales. The assessee could not explain the source of huge cash deposit during the demonetization period from 9.11.2016 to 30.12.2016. He, therefore, made addition of Rs.1,77,92,718 to the total income of ....
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.... "1. The learned CIT (Appeals) erred on facts and in law in granting relief to the assessee. 2. The learned CIT (Appeals) erred in deleting the addition of Rs.1,77,92,718 u/s. 68 without appreciating the fact that the assessee had failed to furnish a reasonable explanation for the abnormal increase in sales during the period July to December, 2016. 3. The learned CIT (Appeals) erred in holding that the assessee had discharged the primary onus of proving the sources for the cash deposits in the bank account. 4. The appellant craves leave to amend or alter any ground or add any other grounds which may be necessary." 7. The learned Departmental Representative strongly challenged the order of the learned C....
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....(SC) and CIT Vs. Durga Prasad More reported in 82 ITR 801 (SC), he submitted that the learned CIT (Appeals) in the instant case is not justified in deleting the addition. He accordingly submitted that the order of the learned CIT (Appeals) be reversed and that of the Assessing Officer be restored. 8. The learned counsel for the assessee, on the other hand, submitted that the cash deposited during the demonetization period in specified notes is only Rs.17 lakhs out of the total deposit of Rs.2,10,80,000. The amount of Rs.17 lakhs is again within the cash balance available on the demonetization date. The learned counsel for the assessee submitted that the assessee was regularly filing VAT returns and there is no defect in the details of pu....
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....hich have already been reproduced in the preceding paragraphs. It is the submission of the ld. DR that when large number of Rs.2000 notes were deposited in the bank account during the demonetization period, the assessee was duty bound to give the names of persons to whom he has sold such goods and who in turn has given such large number of Rs.2000 notes that were deposited in the bank account. It is the submission of the learned counsel for the assessee that out of total deposit of Rs.2,10,80,000 during the period from 9.11.2016 to 30.12.2016 only an amount of Rs.17,00,000 has been deposited in specified notes and the remaining deposits were made in other than specified notes. It is also the submission of the learned counsel that when the V....