TaxTMI 
TaxTMI 
2023 (8) TMI 419
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....iod u/s 69A in spite that transaction has recorded in books of accounts with proper source of deposit. The amount has been deposit. The amount has been deposited out of cash withdrawn from bank and available as cash in hand." 3. Succinctly, the factual panorama of the case is that assessee before us is a Private Limited Company and filed its return of income for the A.Y. 2017-18 on 17.10.2017 declaring total income at Rs. 75,74,170/-. The assessee is engaged in the business of dyeing and printing in the textiles sector. For the assessment year under consideration, the assessee has shown income under the head Profit and Gains from Business and Profession. The case was selected for complete scrutiny through CASS and notice u/s 143(2) of the Income Tax Act was issued to the assessee. Subsequently, notices u/s 142(1) dated 05.08.2019 and 17.10.2019 calling for relevant details and documents, were also issued. During the assessment proceedings, various details, documents and explanations relevant to the case have been furnished online by the assessee. 4. On perusal of the details available, it was noticed by the assessing officer that the assessee holds A/c. No.4535002100014069 ....
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....) Investment/expenditure are not recorded in the books of account of assessee; (ii) The nature and source of acquisition of assets or expenditure are not explained or not explained satisfactorily. The expression "nature and source" used in this section should be understood to mean requirement of identification of source and its genuineness. To explain "Nature" it would require the assessee to explain what is description of investment or expenditure period and the manner in which it was done. Therefore, Assessing Officer held that assessee failed to prove the fact that the cash deposited during demonetization period are normal business receipts and therefore, it is held that the amount of deposits made in the bank accounts, including cash deposited during demonetization period, represent income from undisclosed sources. Hence, Assessing Officer held that the assessee has failed to give any satisfactory explanation about the nature and source of cash deposits and hence the unexplained cash deposit of Rs. 45,00,000/- was deemed as unexplained money u/s 69A of the Income Tax Act, 1961. 7. Aggrieved by the order of Assessing Officer, the assessee carried the matter in appeal before ....
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....see is very nominal, however during the year of demonetization, the assessee has managed the cash book to demonstrate that the amount withdrawn from the bank has been redeposited in the bank account, which is nothing but a cooked story therefore ld DR prays before the Bench that addition made by the Assessing Officer should be sustained. 10. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. Though facts have been discussed in detail in the foregoing paragraphs, however in the succinct manner, the relevant facts and background are reiterated in order to appreciate the controversy and the issue for adjudication.The assesses claims to be in the business of processing of cloths on job work. The business is located in Gujarat. The AO has observed the facts the assessee has made cash deposits of Rs. 25 Lacs and 20 Lacs in its bank account in Punjab National Bank and Canara Bank respectively. Thus, the total deposit was Rs. 45 Lacs ( Rs. 25 Lacs and 20 ....
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....t is liable to be set aside in appeal as it is in clear violation of the procedure prescribed for that purpose. The Tribunal was, therefore, right in holding that the assessments in question were liable to be set aside as there was no compliance with section 25A(1). It is, however, difficult to agree with the submission made on behalf of the assessee that the duty of the Tribunal ends with making a declaration that the assessments are illegal and it has no duty to issue any further direction. It is well known that an appellate authority has the jurisdiction as well as the duty to correct all errors in the proceedings under appeals and to issue, if necessary, appropriate directions to the authority against whose decision the appeal is preferred to dispose of the whole or any part of the matter afresh unless forbidden from doing so by the statute. The statute does not say that such a direction cannot be issued by the appellate authority in a case of this nature. In interpreting section 25A(1), we cannot also be oblivious to cases where there is a possibility of claims of partition being made almost at the end of the period within which assessments can be completed making it impossibl....
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....il of the cash withdrawal of Bank of Baroda which is reproduced below: "(4) The amount of Rs.45,00,000/- has been deposited Into bank account out of the amount withdrawn from bank and remained as cash in hand after meeting expenses and the details of month of Oct and upto 08/11/2016 is as under; Date Amount Narration 13/10/2016 50,000/- Withdrawn from Bank of Baroda 18/10/2016 15,00,000/- Withdrawn from Bank of Baroda 26/10/2016 30,00,000/- Withdrawn from Bank of Baroda 27/10/2016 30,00,000/- Withdrawn from Bank of Baroda 29/10/2016 5,00,000/- Withdrawn from Bank of Baroda Total 80,50,000/- Less: Amount spent out of Above for part exp. Of October month (expenses Rs. 84,26,399- opening cash RS.73,39,189/- 10,87,210/- Less: Amount spent out of Above for exp. Upto 08//11/2016 13,608/- Balance as on 08/11/2016 69,49,182/- In view of above details, the amount of Rs.45,00,000/- has been deposited out of Rs.69,49,182/- remained as cash in hand as on 08/11/2016 after meeting the expenses. The amount has been withdrawn on 26/10/2016, 27/10/2016 and 29/10/2016 to meet the expenses for the month of Nov....