2023 (12) TMI 976

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....) relating to the Assessment Year (A.Y) 2017-18. 2. The brief facts of the case is that the assessee is a Partnership Firm engaged in the business of dealership of two wheeler of Hero MotoCorp Ltd. and also in sales of parts and authorized service station. For the Assessment Year 2017-18, the assessee filed its Return of Income declaring total income of Rs. 13,97,820/- on 13.10.2017. The return was processed u/s. 143(1) and then taken up for scrutiny assessment as large value of cash deposit made by the assessee during demonetization period. The Assessing Officer issued various notices u/s. 143(2) calling for explanations, details and having satisfied with the explanations offered by the assessee, accepted the returned income as assessed i....

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.... 39,03,000.00 39,03,000.00 ICICI BANK TOTAL (A) 2,11,95,130.00 2,11,95,130.00   11/11/2016 50,00,000.00 50,00,000.00 RNSB BANK TOTAL (B) 50,00,000.00 50,00,000.00   GRAND TOTAL (A+B) 2,61,95,130.00 2,61,95,130.00   3. During demonetization period, there were long queues and public rush for deposit and withdrawal in banks, even bankers were not accepting such huge amount due to which we were compelled to deposit in piecemeal for safely deposit of cash of our business, we have deposited in banks in different dates. We have reasonable intention of safely deposit of our business cash. There is no other intention of cash deposit in 5 installments. 4. During demonetization period, we have not depos....

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....d Principal Commissioner of the Income Tax has grievously erred in initiating the proceedings u/s 263 of the Act, 1961. 2. On the facts and in the circumstances of the case as well as law on the subject. The learned Principal Commissioner of Income Tax has grievously erred in holding that the assessing Officer had not verified the properly transaction of cash deposition of SBN made during demonetization period during the course of proceeding and not made proper inquiry or verification finalized the order of assessment u/s. 143(3) of the I.T. Act is contrary to the fact of the case. 3. On the facts and in the circumstances of the case as well as law on the subject, the entire proceedings u/s 263 are bad-in-law and invalid as assessment o....

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....ssessing Officer by issuing notice u/s. 142(1) on 17.08.2019, 10.10.2019 and 14.12.2019. In response, the assessee filed detailed replies on 22.10.2019, 12.12.2019 and 24.12.2019 furnishing various bank accounts, details of cash in hand and other details as follows: 3. Details of Cash in Hand (Notice Point No. 11(3)): We herewith submit details of Cash in Hand in following format as per your requirement for your ready reference. Opening Cash in hand as on 01/04/2014 Cllosing cash in hand as on 31/03/2015 Closing cash in hand as on 31/03/2015 Closing cash in hand at the midnight of 08/11/2016 36,16,578.00 44,27,139.00 88,70,753.00 2,63,38,644.00 4-Details of Cash in Hand (Notice Point No. 11(4)): We herewith submit deta....

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....he SFT Forms relating to the ICICI Bank and Rajkot Nagrik Sahakari Bank Ltd. which is running to 67 and 23 pages which contains the name of the purchaser of two wheeler with full Postal Address, Pincode, Nature of Transaction and amount received by the assessee. This SFT returns which are very much available with the Assessing Officer. That apart, the assessee also furnished certificate from ICICI Bank and Rajkot Nagrik Sahakar Bank Ltd. about the demonetization notes deposited with the banks with date-wise transaction and denomination-wise transaction. Further the assessee provided sales register and stock summary for the Financial Year 2016-17. The assessee also produced HDFC Current Account No. 16972320000155, during the demonetization p....

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....000155 of Rs. 7,16,001/-. The assessee also produced the bank statement of the above account, during the demonetization period. Perusal of the same clearly shows that there were no cash transaction in the above current account as alleged by the Ld. PCIT, whereas the entire transactions were done through either cheque or NEFT mode. So the very basis of invoking 263 on the ground that the cash deposits in HDFC Bank itself, is baseless. Further the Assessing Officer has made detailed enquiry before passing the assessment order on the cash transaction during the demonetization period. 9.1. Further in our considered view, the Ld. PCIT partially looking into the assessment records and initiated the Revision proceedings on the ground that the ass....