TaxTMI 
TaxTMI 
2023 (9) TMI 939
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....nafter referred to as 'the CIT(A)'] for the Assessment Year 2017-18, whereby the Ld. CIT(A) had dismissed the appeal of the Assessee against the Assessment Order, dated 02.12.2019, passed under Section 144 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). 2. The Appellant has raised following grounds of appeal: "1 On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in confirming the addition made by the Assessing Officer ("AO") under section 69A of the Act in respect of the cash deposited in bank on various dates during the demonetization period (09.11.2016 to 31.12.2016) aggregating to Rs. 13,60,000 without appreciating the Appellant's submissions in right perspective, pa....
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....ar 2017-18. The Assessing Officer completed the Assessment under Section 144 of the Act vide order, dated 02.12.2019, holding that the Appellant has failed to provide any documentary evidence to show that the cash deposited in the bank account by the Appellant was normal business income from sale of milk and that the Appellant was not permitted to receive SBNs and therefore, the cash deposited by the Appellant was nothing but Appellants own undisclosed income. 4. Being aggrieved, the Appellant preferred appeal before the CIT(A) and filed following documents/details and filed written submission dated 25.10.2021 and 2.11.2022. However, the CIT(A) was not convinced and therefore, dismissed the appeal vide order dated 12.12.2022 holding as u....
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.... milk and not of retailer. (iv) Cash of Rs. 13,60,000/- deposited into the bank was utilized for drawing demand draft in favour of M/s Gujarat Co-op Milk marketing Limited for purchase of milk. 6.4 Exemption Notification dt. 8/11/2016 in S.O. 3408(E) was given for the - convenience of Public in carrying out certain emergent and urgent transactions using the specified notes. Column (d) of notification reads for purchase at milk booths operating under authorisation of Central or State Governments. The assessee does not come under Milk Booths operating under authorisation of Central or State Governments. Moreover assessee did not bring any material on record to establish that he comes under Milk Booths operating unde....
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....nk statement of the Appellant for the relevant financial year and the Ledger Account of purchases made from GCMM show that the Appellant had deposited cash from sale of milk in the bank account which was used to make payments for purchase of milk from GCMM. Thus, in our view by furnishing the aforesaid documents/details the Appellant was able to substantiate the stand during the assessment proceedings and shift the burden of proof on the Revenue. However, the CIT(A) did not deal with documents/details furnished by the Appellant and failed to either carry out any inquiry/verification into purchase/sale of milk by the Appellant to controvert the averments made by the Appellant, or to point out any infirmity in the aforesaid documents/details.....
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....04.2016 to 31.03.2017. (g) Ledger Extract of purchase account for the period 01.04.2016 to 31.03.2017. (h) Ledger Extract of M/s Gujarat Cooperative Milk Marketing Ltd. for the period of 01.04.2016 to 31.03.2017. 7. The Notification No. S.O. 3408(E), provided that SBNs would continue to be legal tender for purchase of milk at GCMM. Thus, in our view, the Assessing Officer as well as CIT(A) were incorrect in holding that the Appellant was not covered by the notification. Even if for the sake of arguments it is believed that that though the Appellant was not covered by the aforesaid Notification, the Appellant had a bonafide belief that the Appellant was entitled to the benefit of the Notification and therefore, permitted....