2023 (7) TMI 222

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.... its members during the demonetisation period in Specified Bank Notes. 3. The Ld.AR before us today has furnished the list of depositors, KYC documents of the depositors and cash book for the period 01.11.2016 to 18.11.2016 along with bank statements for the relevant period. It is submitted by the Ld.AR that except for a few depositors who expired during covid period KYC of the rest of the depositors have been furnished in the said paper book. All the above documents have been furnished before the authorities below which has not been duly verified. 4. The Ld.AR submitted that it accommodated its members by extending its services by accepting the money deposited by them. It is the submission of the assessee that no benefit has accrued ....

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....016 and 30/12/2016. Therefore Ld.AO made addition of said amount as income of the assessee u/s. 68 of the income tax act, on the ground that the assessee ought not to have accepted SBN's which were no longer a legal tender. At the outset, we are of the view that the cash book and the confirmations filed by the assessee should have been verified. 9.1 We have carefully gone through the various standard operating procedures laid down by the central board of direct taxes issued from time to time in case of operation clean. The 1st of such instruction was issued on 21/02/2017 by instruction number 03/2017. The 2nd instruction was issued on 03/03/2017 instruction number 4/2017. The 3rd instruction was in the form of a circular dated 15/11/2017....

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.... on identifiable persons as compared to earlier histories will also give some indication for suspicion. Non-availability of stock or attempts to inflate stock by introducing fictitious purchases is also some indication for suspicion of fictitious sales. Transfer of deposit of cash to another account or entity, which is not in line with the earlier history. Therefore, it is important to examine whether the case of the assessee falls into any of the above parameters are not. 10.2 The assessee is directed to establish all relevant details to substantiate its claim in line with the above applicable instructions. We are aware of the fact that not every deposit during the demonetisation period would fall under category of unaccounted cash. How....