TaxTMI 
TaxTMI 
2023 (5) TMI 682
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....me-Tax (Appeals) is bad in law and is against the principles of natural justice is required to be quashed in toto. 2. The very succinct conclusions drawn by the learned Commissioner of Income tax (Appeals) in a small Para 6.8 is totally against the Appellate Proceedings to be followed, especially when the appellant had submitted detailed written submissions which is reproduced in the Pages 8 to 12 of the Appellate Order. Such an order passed by the learned Commissioner of Income tax (Appeals) is totally against the principles of law and against the established proceedings of law is therefore required to be quashed. 3. In any case and without prejudice, the learned Commissioner of Income tax (Appeals) has erred in confirmin....
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....e and other grounds to be adduced at the time of hearing, it is requested that the treatment of Rs. 43,19,100/- as unexplained cash credits u/s. 68 of the Act, be deleted, it be also held that provisions of section 115BBE of the Act, are not applicable to the facts of the case and interest levied u/s. 234B and 234C be also deleted." 2. Brief facts of the case are as under: 2.1 Assessee is a partnership firm and is carrying on the business of retail trade in gold jewellery. For year under consideration it filed its return of income on 25.10.2017 declaring total income of Rs.62,23,150/-. The assessee has also maintained regular books of accounts that is subjected under audit u/s. 44AB of the Act. For the year under consideration, the ca....
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.... to which assessee submitted that there was no compulsion to collect PAN as each bill was below Rs. 2 lakhs. The assessee submitted that entire turnover was supported by bills and invoices and the purchases at stock and sales were fully accounted for and duly vouched by assessee in the books of accounts. The assessee further submitted that the spurt in cash sales was due to Diwali and Dussehra festivals that happened during the month of October, 2016 due to which the regular purchases of gold and silver increased. The assessee further submitted that demonetisation was announced on 08.11.2016 and circulation of SBN was banned from 09.11.2016 due to which the customers rushed to the shop of assessee and made purchases. The Ld.AO after conside....
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....tes that he has accepted from other "customers". In both the above scenarios discussed in the Sec 68 is triggered. In (a) the genuineness of transaction is non-existent as it was done by way of illegal tender. And in (b), the assessee's untaxed money was introduced into his books by way of unidentified sales. Also, by the very nature of cash transaction, the genuineness of the transaction cannot be established beyond doubt. At his juncture, it becomes pertinent again to note that the assessee was unable to furnish the PAN identities of the sales to the extent of Rs. 43,19,100. He has stated that the assessee is under no obligation to maintain the identities of the purchasers by any law. Under regular circumstances, this office ....
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....issions advanced by both sides in the light of records placed before us. 6. We are of the opinion that there is a violation of natural justice in respect of not properly verifying the details filed by the assessee by the authorities below. Considering the fact that, in any event, the issue would have to be remanded to the Ld.AO in order to verify the cash deposit of Rs.43,19,100/- in specified bank notes during the demonetisation period in its bank account in accordance with various instructions referred to by the Ld.DR hereinabove. 7. Admittedly, the assessee accepted the SBNs which were no longer a legal tender and were to be explained in accordance with the relevant circular mentioned hereinabove. These instructions gives a hint....