TaxTMI 
TaxTMI 
2023 (6) TMI 267
X X X X Extracts X X X X
X X X X Extracts X X X X
....issued the following directions: "Since the appeal is already pending, we deem it appropriate to observe that the learned President of the Tribunal, if approached by the petitioner along with a copy of this order, may make appropriate arrangement so as to ensure expeditious hearing of the appeal and / or stay application." 3. Pursuant to the aforesaid directions of the Hon'ble High Court, the Hon'ble President, ITAT vide his order dt. 03/03/2023 has constituted the present Bench to hear the matter through the virtual platform and hence this matter had came up for hearing before us and same was heard on 06/03/2023. 4. Briefly the facts of the case are that the assessee is engaged in the business of manufacturing, trading, sales and export of Gold and Diamond jewellery for the F.Y. 2016-17 relevant to A.Y. 2017-18. The assessee filed its return of income declaring total income of Rs. 9,16,10,910/-. Subsequently, the case was selected for complete scrutiny through CASS to examine cash deposits during the demonetization period. Thereafter notice under section 143(2) and 142(1) were issued from time to time and thereafter, the assessee was issued a show cause under sectio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as per the books of accounts after providing reasonable opportunity to the assessee. 8. Against the said findings and the directions of the Ld. PCIT, the assessee is in appeal before us and has raised the following grounds of appeal: 1. That the Learned Pr.CIT, Kanpur-1 has erred in law and on facts in invoking the provision of section 263 of the Income Tax Act 1961 without even pointing out in the Notice dated 21.03.2022 as to how and in what manner the impugned Assessment order under reference was erroneous as well as prejudicial to the interest of revenue, therefore, the whole proceeding under section 263 of the Income Tax Act, 1961, concluded vide illegal order dated 31.03.2022, is unsustainable in law and on facts and liable to be quashed. 2. That the Ld. Pr. Commissioner of Income Tax-1, Kanpur has neither herself conducted any enquiry nor got such enquiry conducted on the issue(s) on which the impugned order under section 263 of the Income Tax Act, 1961 has been set aside, therefore, the Pr. Commissioner of Income Tax-1, Kanpur is not justified in exercising powers under section 263 of the Income Tax Act, 1961. 3. That the order No.lTBA/REV/F/RE....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le in law and on facts and deserves to be quashed. 10. That re-assessment proceedings initiated by issue of notice u/s 142(1) of the Income Tax Act, 1961 on 31st March, 2022 itself may kindly be stayed till disposal of appeal. 11. That any other relief or reliefs as your honour may deem fit in the facts and circumstances of the case be granted. 9. During the course of hearing, the Ld. AR submitted that the reasons for which the show cause under section 263 was issued by the ld PCIT are entirely different from the reasons on which the findings in the impugned order have been recorded by the ld PCIT while passing the order under section 263 of the Act. In this regard, our reference was drawn to the show cause notice wherein the Ld. PCIT has alleged that the AO has failed to examine the issue of unexplained inflated sales post demonetization. However, referring to the para 5.2 and para 10 of the impugned order, it was stated that the Ld. PCIT has set aside the assessment order for the reason that the assessment order was passed without examining the increase sales or obtaining corroborative evidence regarding the genuineness of the cash sales for the period 01/10/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....till date of iv) Sale Purchase Register for the period from 01.04.2016 to till date of Notice v) Name and address of supplier of material vi) Details of all bank accounts along with details of Cash deposit of each account from 01.11.2016 to till date of Notice. 2. 28.2.2017 In response to above notice issued u/s 131(1A) of the Income Tax Act, 1961 dated 06.02.2017, the assessee filed reply dated 28.02.2017 attached at P.B. No. 4 along with said reply following documents were also attached: a) Complete Return of Income 5-43 b) Cash Account 44-298 c) Month wise summary of stock for the period from 01.04.2016 to 06.02.2017. 299-350 d) List of Supplier for period from 01.04.2016 to 06.02.2017 along with respective ledger account in the books of assessee. 351-455 e) Details of Bank Account maintained by the assessee. 456 f) Details of Cash Deposit during the period 01.11.2016 to 06.02.2017 457 13. It was further submitted that the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ls of Cash deposited in bank from 8th Nov.2016 to 31st Dec. 2016, it has been noticed that an amount of Rs.18,50,00,000/- have deposited in cash in CC A/c. No. 32207138788 with SBI Phool Bagh Branch, Kanpur, but the perusal of Bank account statement it is noted that on 10.11.2016 in this account only Rs.6,00,00,000/- have been deposited. Reply dated 01.11.2019showing monthly details of cash receipts and cash deposited along with copy of Pay-in-slip. 477-480 481-490 3. Furnish copies of monthly VAT Returns for the Period 01.04.2016 to 31.03.2017 Submitted along with Reply dated 01.11.2019 491-591 4. Furnish Month-wise details of purchases and sales effected during the F.Y. 2015-16 & 2016- 17. Filed on 01.11.2019 Purchases Sales 592-593 594-595 5. Furnish copies of Ledger Account in respect of purchases and sales made during 01.10.2016 to 30.12.2016 along with all bills of purchases. Filed on 01.11.2019 Purchases Sales 596-632 633-783 6. It is noticed that during the year under consideration the assessee purchased old gold at Rs.11,14,82,685/- as against preceding year's figure of Rs.4,55,98,436/-, furnish copy of Ledger accoun....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The assessee required to explain such a huge alleged cash sales of Rs.33,95,55,850/- during the period 01.10.2016 to 08.11.2016 (Kanpur + Noida Unit) along with corroborative evidences Reply dated 17.12.2019 ReferPointNo.9of aforesaid Reply. 1178-1182 17. It was further submitted that the AO issued another notice issued under section 142(1) of the Income Tax Act, 1961, dated 28.12.2019 (appearing at P.B. No. 1187-1188) and the details of reply filed by the assessee during the course of assessment proceedings are as under:- S.N Nature of Query Reply filed by the appellant (assessee) P.B. No. of Reply of appellant (assessee). 1. As per 3CD Report the Turnover of the company has shown at Rs.1,17,21,03,124/- during the year under consideration as against turnover of the immediately preceding year at Rs.1,03,31,20,315/- and it was found that GP Rate for the year under consideration has been shown at Rs.16.20% as against the G.P. Rate of Rs.16.41% in the immediately preceding year, explain the reason of Low G.P. Reply dated 28.12.2019 Refer Point No. 1 of aforesaid Reply. 1189-1190 2. The assessee was required to prove genuineness of following Su....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ales for the Financial Year 2015-16 and 2016-17 as per Format given in Page No. 472 to 474, which was filed by the assessee vide reply dated 01.11.2019 at P.B. No. 477- 480." 19. It was accordingly submitted that the above facts clearly demonstrate that the A.O. has examined in detail the sales made by the assessee during the year under consideration including cash sales and sales during the pre-demonetization period. The Ld. PCIT neither brought any material nor undertaken any enquiry by himself to prove as to how the assessment order passed under section 143(3) of the Income Tax Act, 1961 is erroneous as well as prejudicial to the interest of the Revenue. 20. It was further submitted that subsequently, the ld. JCIT, Range-6, Kanpur also issued direction under section 144A of the Act dt. 26/12/2019 in relation to sales and cash deposit and which have been duly taken into consideration by the AO while passing the assessment order and nothing has been stated by the Ld. PCIT as to infirmity in the said directions so passed by the JCIT, Range-6, Kanpur and which has been followed by the AO while passing the assessment order. 21. It was further submitted that the assessee had ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re which was disclosed under PMGKY Scheme 2016 by the assessee company has been worked out as under: Sl. No. Particulars Amount (Rs.) 1 Total cash (SBN deposit with banks) 21,91,86,000 2 Estimated profit on cash sales 7,54,87,658 3 G.P. Rate as per books of accounts 16.20% 4 Gross profit as per books of accounts as per (1) above (1 X 3) 3,55,08,132 5 Difference (2-4) Additional profit Rs.3,99,79,526 Or say Rs.4 crore 8. The aforesaid Rs.4 crore was declared by the assessee under PMGKY Scheme 2016 hence no further addition was required on cash sales. During the assessment proceedings the AO in his office note dated 29.12.2019 (copy enclosed) has remarked that "the entire sale and purchases were fully verifiable and stock register is also maintained transaction wise and the trading results deserve to be accepted. During the course of assessment proceedings, on examination of books of accounts on test check basis, purchases, sales were found vouched. Hence no adverse inference has been drawn..." 23. It was accordingly submitted that the impugned revision order on the issue of cash sales / sales during the pre-demonetiza....
X X X X Extracts X X X X
X X X X Extracts X X X X
....paid by the assessee and the same is evident from the copy of List of Sundry Creditors filed along with Audited Balance Sheet for the Financial Year ended on 31.03.2018. This Balance Sheet as on 31.03.2018 was filed before the completion of assessment proceedings for the Assessment Year 2017-18 along with return of income for the Assessment Year 2018-19 on 10.09.2018. The details in respect of five Sundry Creditors is reproduced as under:- S.N. Name of the Sundry Creditors for purchase of Goods Balance as on31.03.2018 Balance as on31.03.2017 Copy of Confirmation at P.B. No. 1. M/s. S.M. Diamonds Pvt. Ltd. Rs. 3,22,330.38 49,16,868.38 1273 2. M/s. Sankalp Diam Exports Nil 1,25,79,380.00 1270 3. M/s. Saffron Gems Pvt. Ltd. Nil 2,04,76,105.00 1272 4. M/s. N.P. Diamonds Pvt. Ltd Nil 42,43,240.00 1269 5. M/s. Antique Exim Pvt. Ltd. Nil 1,48,46,852.00 1271 27. It was further submitted that complete books of account, bills and vouchers were produced before the A.O. during the assessment proceedings. Copies of Bill of Purchases relating to aforesaid 5 Sundry Creditors are enclosed at P.B. No.1277-1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r: "...19. In the present case, the findings recorded by the Tribunal are correct as the CIT has not gone into and has not given any reason for observing that the order passed by the Assessing Officer was erroneous. The finding recorded by the CIT is that "order passed by the Assessing Officer may be erroneous". The CIT had doubts about the valuation and sale consideration received but the CIT should have examined the said aspect himself and given a finding that the order passed by the Assessing Officer was erroneous. He came to the conclusion and finding that the Assessing Officer had examined the said aspect and accepted the respondent s computation figures but he had reservations. The CIT in the order has recorded that the consideration receivable was examined by the Assessing Officer but was not properly examined and therefore the assessment order is "erroneous". The said finding will be correct, if the CIT had examined and verified the said transaction himself and given a finding on merits. As held above, a distinction must be drawn in the cases where the Assessing Officer does not conduct an enquiry; as lack of enquiry by itself renders the order being erroneous and ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the findings contained at para 7 to 10 of the impugned order which read as under: "7. The date fixed for compliance was 25.03.2022. The assessee filed part reply on 25.03.2022. On the request of the assessee, the case was adjourned to 29.03.2022 on which date more written submissions were filed. The gist of the assessee's submissions are as follows: a. The unilateral comparison of sales from 01.04.2016 to 30.09.2016 and from 01.10.2016 to 08.11.2016 done in the show cause notice by the AO dated 09.12.2019 was not correct and was explained in details by the assessee in its reply dated 17.12.2019. It is common knowledge that around Deepawali festival, sale of gold, silver and diamond jewellery is exponentially higher compared to any other period in the remaining year because it is a customary in India to buy Gold and Silver items and jewellery preceding fortnight around Deepawali particularly, on dhanteras, chhoti Deepawali and Deepawali as well as it continues for few more days after Deepawali. b. The assessee has also placed reliance in the cases of Sreelekha Banerjee Vs. CIT (1963) 49 ITR (SC), Lalchand Bhagat Ambica Ram Vs.CIT (1959) 37 ITR 288 (S....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ued leads the undersigned to conclude that the assessment order for A.Y. 2017-18 is erroneous and prejudicial to the interest of revenue as it has resulted in loss of revenue which was legally due to the exchequer. 9. I have gone through the judgements placed by the assessee company. It is noticed that the facts and circumstances of the case of the assessee is different from the cases decided by the above judgements. 10. In the light of the discussion above I am of the considered view that the assessment order passed on 29.12.2019 is erroneous and prejudicial to the interest of the revenue. Accordingly, in exercise of powers conferred u/s 263 of income Tax Act, I set aside the aforesaid assessments order and restore the same to the file of the Assessing Officer with directions to frame the assessment afresh after undertaking necessary inquiries and verification in respect of the cash sales and transactions with creditors as per the books of accounts. The Assessing Officer shall allow reasonable opportunity of being heard to the assessee before passing the order. 34. We have heard the rival contentions and purused the material available on record. The ld PCIT in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....are adversial in nature and which result in unsettling the position which has been accepted in the past, the assessee be put to notice and be allowed a reasonable opportunity of being heard and to put forward its defence/submissions. 37. In the instant case, on perusal of the show-cause notice dated 21/03/2022, we find that the matter relating to sundry creditors has not been raised by the ld PCIT. Further, as regards allowing an opportunity during the course of the revisionary proceedings, there is nothing on record and further, the ld CIT/DR couldn't rebut the submissions so made by the ld AR that no such opportunity was provided to the assessee. We therefore find that it is a matter of record that the assessee was not provided any opportunity either as part of the initial show-cause notice or even during the course of the revisionary proceedings in this regard and therefore, the findings which have been recorded by the ld PCIT, holding the assessment order as erroneous in so far as prejudicial to the interest of the Revenue on account of non-verification of the business transactions with the sundry creditors on an independent basis, thus deserve to be set-aside at the very th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....3/-. For the sake of convenience, month-wise cash-in-hand position for F.Y. 2015-16 and F.Y. 2016-17 is reproduced hereunder:- Further vide notice u/s 142(1) of the Act dated 16.10.2019, the assessee was required to furnish the details of cash sales, payment made in cash, cash deposited in bank, closing cash in hand, etc.. The assessee vide its reply dated 01.11.2019 submitted details as under:- Keeping in view the abnormal increase in sales during the month October 2016 and upto 8th November 2016, copy of ledger accounts of sales made during Oct. & upto 8th Nov. 2016 was called from the assessee. The assessee vide its reply dated 01.11.2019 furnished details of sales made during Oct.2016 & upto 8th Nov. 2016 in respect of various items. From the perusal of above details, it is seen that during the month October 2016, you have shown cash sales of various items worth Rs.25,58,81,602/- (Kanpur + Noida Unit) as against cash sales of Rs.3 to Rs.5 crore per month in rest of the months of F.Y. 2016-17. From the perusal of details of cash sales made during F.Y 2015-16, it is noticed that in none of the months, such an abnormal cash sales h....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....2016 to 08.11.2016 by producing cogent documentary evidences as compared to sale shown in other months, you are hereby accorded one more opportunity to prove the genuineness of such an inflated cash sale of Rs.33,95,55,859/-during the period 01.10.2016 to 08.11.2016......" Here it is made clear that in case your explanation is not found satisfactory and supported by corroborative cogent documentary evidences, the sales to the extent, working of which is given below shall be considered as bogus cash sates introduced by generating bogus sale invoices to accommodate unaccounted cash and give it a legal shape:- "....... Total cash sale during 01.10.2016 to 08.11.2016 Rs. 33,95,55,859/- Less: Regular sales of 39 days (from 01.10.2016 to 08.11.2016) on the basis of average per day sale of preceding six months. Total sale in preceding six month - Rs,. 29,25,42,304/- / 183 days = Rs. 15,98,591 per day x 39 Rs. 6,23,45,081/- Add: Increased sale @ 15% as compared to sale shown in the month of September 2016, on account of Diwali festival fall in October 2016 Rs. 82,25,407/- Rs. 7,05,70,488 Remaining sale is on account of issue of bogus/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nish the details and information. In this regard your humble assessee wishes to submit point-wise reply as under: l)It is significant to point out that Domestic sales are under 4 categories, which have different characteristics: i)Cash Sales (without name & address) ii)Sales, partly in cash and partly through cheque/credit card/on credit. iii)Cash Sales with identification of customers (with name & address) iv)Sales against return of old jewellery (Old Gold) (with name & address) 2)The average purchase price during the Financial Year 2015-16 and 2016-17 were as under: Financial Year Rate/Gm. 2015-16 2,693/- 2016-17 2,910/- The increase in Gold Prices approximately 8-10% hence 8-10% increase in sales compared in F.Y. 2015-16 is quite reasonable & regular feature. 3) The Breakup/Summary of total domestic sales for the period from Cash Sales without identification of customers Cash Sales with identification of customers Received partly/ in cash/ Cheque, credit card, debit card Sales against bullion / old jewellery Domestic Total Sales (I) (2) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he period 01.10.2016 to 08.11.2016 only to generate cash-in-hand by fabricating Cash Book and shown the sale proceeds under the head "Revenue from Opedration " and filed VAT returns by including receipt from alleged cash sales so that unaccounted cash can be reflected as genuine (Unquote) 5)Your goodself will kindly appreciate that VAT assessment for the Financial Year 2016-17 was completed and ultimately the sales as per books of account of the assessee were accepted as true and correct. 6)The books of account of the assessee are maintained on computer by using customized software. The entries relating to sale, purchase, expenditure, advance received against orders given etc. are done on a day to day basis and simultaneously Cash Book, Ledger, Stock Ledger, Sale and Purchase Tax Invoices and vouchers etc. are generated from the system itself. It is also significant to note that for every sale whether of gold jewellery or gold diamond jewellery or Kundan jewellery, there is a corresponding entry in the Stock Register and it is not possible to make any adjustment in sales, as alleged. The items of jewellery bear identification number etc. and sale/purchase....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... includes Deepawali Season Sales from 21.10.2016 to 08.11.2016 (or different dates in each year due to change in Deepawali date) which is tipically highest sale period in every year. The average daily sale of Deepwali season in Financial Year 2014-15 was (per day) Rs, 43,19,431/- which increased to Rs.57,18,566/- per day in Financial Year 2015-16 and further increased to Rs. l, 12,75,477/- per day in Financial Year 2016- 17 (under assessment ) thus taking out of average per day sales at Rs.l 5,98,591/- is neither factually correct nor based on correct appreciation of Deepawali Season sales, which is an important and significant feature in jewellery trade. ii)The presumption of increase of 15% in sales during Deepawali season is absolutely without any basis and unfounded. The figures of earlier 2 years, given hereabove, are self explanatory and amenable to full verification at any time. iii)Post demonetization period i.e. after 30.12.2016, the Government of India announced Pradhan Mantri Garib Kalyan Yojana and in that scheme the assessee offered additional profit of Rs.4.00 crores on the following premises: (Quote-) After the demonetizat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ulation of sales during the Deepawali season as has been done by the AO and the underlying assumption of increase of 15% is not correct. It has also been submitted that the assessee company has availed the benefit of PMGKY scheme announced by the Government of India and super profits of Rs 4 crores on the cash sales (in SBN deposits with Bank) has been declared and taxes thereon have since been deposited. 42. It is also relevant to note that the assessee separately also moved an application dated 20/12/2019 before the Additional CIT, a day after submitting the aforesaid submissions before the AO, seeking directions u/s 144A of the Act and the Additional CIT has disposed off the assessee's application vide his order F.No.Addl.CIT/Rg-6/144A/19-20/771 dated 26/12/2019 and issued the necessary directions to the AO and the contents thereof read as under: "Directions u/s 144A in the case of M/s Kays Jewels Private Ltd. PAN: A.Y. 17-18- reg- .... Please refer to die application u/s 144A in the above mentioned case dated 23.12.2019 moved by the assessee before the undersigned. On perusal of the application of the assessee it was found dial the assessee is aggr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sal of AO. There were no chance of manipulation of VAT return. f) After demonetization, the Government had announced Pradhan Mantri Garib Kalyan Yojana 2016 and assessee had already declared profit of Rs. 4 crs on the aforesaid cash sales as per the scheme. So again the same amount of cash sales has no relevance to be added as unexplained credits u/s 68 of the I.T. Act, 1961 in the case of assessee. g) There was reduction of stock with the corresponding increased sales. The stock is duly recorded in the books of account and no default as per the show cause notice or the UP VAT. The assessee was given opportunity of being heard on 24.12.2019 and 26.12.2019. The assessee had filed the reply in Taped wherein he had relied on the order of the Hon 'ble TTAT Delhi Bench in the case of Agson Global Pvt. Ltd. from AY. 2012- 13 to A.Y. 2017-18 in TTA No. 3741, 3742, 3743, 3744, 3745 & 3746/Del/2019. The assessee has submitted that the above case law may be referred to before making any additions. From perusal of above facts on record and as reported by AO and assessee, the following inference is drawn35 1. The assessee had offered the gross, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....I.T. Act, 1961 is given on the limited issue before the undersigned. The AO is directed to follow the directions on the issue while completing the assessment proceedings. It does not preclude the AO from looking into the other aspects of the case. Ensure that the assessee had paid all the taxes as required on the above disclosures before following the credits. Sd/- Addl. CIT, Rg-6 Kanpur 43. The ld Additional CIT has issued directions to the AO holding that no addition is required to be made on cash sales of Rs 22,54,09,741/-. While doing so, the ld Additional CIT has taken into considerations the fact that the assessee has already offered profits on the total cash sales of Rs 21,91,86,000/- on a higher rate of tax under the PMGKY Scheme 2016, the fact that the cash sales and corresponding cash-in-hand is a regular feature in assessee's line of business and in the past, the same has been accepted, the fact that the VAT authorities have carried out the survey at the assessee's premises and stock was not found short and thus, issuing fictious bills to enhance cash-in-hand is ruled out, that the VAT assessment has been completed wherein the sales have been accepted, and th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....F.No.Addl.CIT/Rg-6/144A/19-20/771 dated 26.12.2019 issued directions to the undersigned, operative part of which Is reproduced as under:- "The assessee had offered the profits on the alleged sales which are proposed to be added u/s 68 of the I. T Act, 1961 on the higher rate of tax as proposed under the scheme of PMGKY.2016. No further addition is required on cash sales of RS.225409741 as per the showcause notice dated 09/12/2019 u/s 68 of the I.T Acl.1961. The direction u/s 144A of the I.T Act, 1961 is given on the limited issue before the undersigned. The AO is directed to follow the directions on this issue while completing the assessment proceedings." After considering, the reply/explanation of the assesses and following the directions issued by Ld. Addl. Commissioner of Income Tax Range-6, Kanpur, assessment is completed at total income of Rs.9,16,10,910/-. Charge Interest u/s. 234A, 234B and 234C Of the I.T. Act, 1961 as per Rule. Allow credit for prepaid taxes, after verification issue notice of demand and challan. 45. The aforesaid directions issued by the Add. CIT u/s 144A are very much part of the assessment records and available at the time ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f these twin condition that jurisdiction u/s 263 can be invoked. In the present case, we however find that the action of the Ld. PCIT is guided solely by the audit objection and therefore, lacks due application of mind and appreciation of other material available on the record on part of Ld. PCIT. 47. Further during the course of hearing, the assessee was asked to file a copy of the declaration under section 199C of the Finance Act 2016 in respect to the declaration made under the PMGKY Scheme 2016 and in response, the assessee has submitted as under; " The Hon'ble Bench directed the appellant company to file documentary evidence for disclosure of additional income on cash sales during the post demonetization period. In this regard your humble appellant begs to submit following documents. i) Copy of Form No. 1 (Form of declaration under section 199C of the Finance Act, 2016, in respect of taxation and investment regime for PMGKY Rule, 2016, file before the Pr. Commissioner of Income Tax-II, Kanpur on 31.03.2017 (Annexure-1). ii) Copy of Acknowledgement of filing of Form No.1 under PMGKY Rules, 2016 (Annexure-2). ii) Copy of Challan for deposit of tax u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e allowed against the income in respect of which a declaration under subsection (1) is made. Explanation.- For the purposes of this section, "specified entity" shall mean- (i) the Reserve Bank of India: (ii) any banking company or co-operative bank, to which the Banking Regulation Act, 1949 applies (including any bank or banking institution 10 of 1949. referred to in section 51 of that Act); (iii) any Head Post Office or Sub-Post Office; and (iv) any other entity as may be notified by the Central Government in the Official Gazette in this behalf 199D. (1) Notwithstanding anything contained in the Income-tax Act or in any Finance Act, the undisclosed income declared under sub-section (1) of section 199C within the time specified therein shall be chargeable to tax at the rate of thirty per cent, of the undisclosed income. (2) The amount of tax chargeable under sub-section ( 1 ) shall be increased by a surcharge, for the purposes of the Union, to be called the Pradhan Mantri Garib Kalyan Cess calculated at the rate of thirty-three per cent, of such tax so as to fulfil the commitment of the Government for the welfa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssment or reassessment made under the Income-tax Act or the Wealth-tax Act, 1957, or to claim any set-off or relief in any appeal, reference or other proceeding in relation to any such assessment or reassessment. 49. On perusal of Section 199M, it is stated therein that where the declaration has been made by misrepresentation or suppression of facts or without payment of tax and surcharge under section 199D or penalty under section 199E or without depositing the amount in the Deposit Scheme as per the provision of section 199F, such declaration shall be void and shall be deemed never to have been made under this Scheme. In the present case, it is a matter of record that the assessee has filed necessary declaration and there is no finding available on record by the Competent authority or for that matter by the Ld. PCIT that the declaration so made by the assessee has been made by any misrepresentation or suppression of facts. 50. Further referring to the provision of section 199-I wherein it has been stated that the amount of undisclosed income declared in accordance with sub section (1) of Section 199C shall not be included in total income of the declarant for any assessment ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed the appellant to furnish Bank certificates from respective Banks. The assessee furnished the complete details (refer Paper Book page numbers PB-1080 to 1169) which inter-alia included Charts as required by AO, Certificates from respective banks, Copy of Cash deposit slips of banks, Bank statement etc. The relevant chart (PB-1083) along with reference to Bank certificate and Bank statement is again summarised as under:- S.No. Name of Bank in which cash was deposited Branch Account No. Cash Deposited during demonetization period Remarks SBNs Other denomination notes 1. State Bank of India Birhana road, Kanpur 10647068142 90,00,000.00 Bank Certificate at PB- 1084, Deposit slips at PB 1085 -1086 and Bank statement at PB- 1087 2. Yes Bank Atta, Noida 8584100000084 2,29,66000.00 3,14,000.00 Bank Certificate at PB- 1091, Deposit slips at PB 1092 -1093 and Bank statement at PB- 1094 to1097 3. State Bank of India Phool Bagh, Kanpur 30502168686 15,00,000.00 ....