2023 (2) TMI 122

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....the Income-tax Act, 1961 (hereinafter referred to as 'the Act') passed by ACIT, Circle-3(1), Kolkata, dated 30/12/2019. 2. The assessee has raised the following grounds of appeal:- "1. That on the facts and circumstances of the case, the CIT(A)-NFAC had erred both in law and on facts by confirming the order of the Assessing Officer on making an addition of Rs.75,00,000/- being cash deposit during demonitization period which was fully explained to A.O. as well as CIT(A). 2. That the assessee craves leave to add, to amend or withdraw to all or any ground on or before the hearing of the appeal." 3. The assessee had also raised an additional ground vide its application dated 29/11/2022 filed on 20/12/2022, challenging th....

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....f Commerce 5875015002403 75,00,000 The assessee had shown the realization of debtors and cash sale made during the year. 5. Assessee also submitted that at the cash verification stage i.e., before the selection of case for scrutiny, assessee had submitted that an amount of Rs.47,61,890/- pertained to realization from debtors which was realized during the period from 01/04/2017 to the date prior to the date of announcement of demonetization and the balance Rs.27,38,110/- pertained to sales made in cash to unidentified persons. In the course of assessment proceedings, assessee had also furnished the details of cash book and realization of debtors. It was also submitted that the closing cash balance as per its cash book as on 08/11....

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....iod by mentioning the same in Note No. 13 of the audited accounts which was required under MCA Notification No. G.S.R. 307(E), dated 30th March, 2017. He further submitted that, the entire amount of cash sale as well as realization from debtors has already suffered taxation as these are part of the turnover of the assessee, duly disclosed and reported in its audited profit and loss account. In respect of realization from debtors of Rs.47,61,890/-, he referred to the standard operating procedure (SOP) issued by the CBDT vide Instruction no. 03/2017, dated 21/02/2017 Annexure, of which para 4 was referred. The said para 4 is reproduced as under:- "4. Cash received from identifiable person (with PAN) 4.1 No additional informa....

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....return filed by the assessee. He also referred to the audited balance sheet as on 31/03/2017 placed at page 130 of the paper book to demonstrate that assessee had trade receivables of Rs.10,45,71,347/- as on 31/03/2016 and Rs.12,48,57,833/- as on 31/03/2017. Ld. Counsel for the assessee also emphasised on the fact that deposit of cash was also intimated electronically to the Department vide its transaction no. 4228483876, dated 25/07/2017. 8.1. Ld. Counsel for the assessee, thus, asserted that addition made by ld. Assessing Officer tantamounts to taxing the same income twice, since the deposit of cash is out of the realization from debtors which has already been reported in its turnover and the cash sales and, therefore, the addition so ....

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....           14.07.2016 19,000             19.07.2016 14,031 (c) Jainex Steel In duster Date Amount Date Amount Date Amount 02.04.2016 92,000 22.05.2016  37,500  02.07.2016  75,000 04.04.2016 74,000 25.05.2016 90,000  03.07.2016  80,000 06.04.2016 89,000 30.05.2016  95,000 04.07.2016 55,000 08.04.2016 95,000 07.04.2016 75,000 05.07.2016 80,000 05.05.2016 90,000 09.06.2016 52,000 06.07.2016 55,000 10.05.2016 89,000 12.06.2016 55,000 08.07.2016 28,986 15.05.2016 90,000 20.06.20....