TaxTMI 
TaxTMI 
2024 (2) TMI 832
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....me Tax Act, 1961 (hereinafter referred to as "the Act"), dated 27.12.2019. 2. The grounds of appeal raised by the assessee are as follows: "1. On the facts and in the circumstances of the case, the Ld. AO has grossly erred in making addition of Rs. 7,00,000/- by invoking the provisions laid under section 69 of the Income Tax Act and considering the explanation given with respect to cash deposition in bank account during demonetization period, arbitrarily as bogus and held as accommodation entry without appreciating the submissions made during the course of assessment proceedings. Thus, the addition of Rs. 7,00,000/- deserves to be deleted; 1.1 That, the Ld. AO has further erred in holding that the submission of cash boo....
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....l. The assessee has filed his return of income on 06.10.2017 declaring total income of Rs. 4,15,420/- after claiming deduction under Chapter-VI of Rs. 15,54,389/-. The return of income was processed u/s 143(1) of the Income-Tax Act, 1961 on 08.09.2017. Later on, the assessee`s case was selected for Limited Scrutiny through CASS. Accordingly, a notice u/s 143(2) of the Income-Tax Act, 1961 was issued on 21.09.2018 by ITBA system and duly served upon the assessee. Thereafter, notice u/s 142(1) of the Income-Tax Act, 1961 dated 8.02.2019, along with detailed questionnaire calling for various details was issued in electronic mode and served upon the assessee. In response to the aforesaid statutory notices, Authorized Representative (AR) of the ....
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....ring the year under consideration he was in employment with M/s.Mahavir Trading Co. In addition to that he was engaged in carrying business of manufacturing of corrugated Boxes & Printing with the partnership firm in the name and Style of M/s.Akash Offset Print. During the year under consideration, the assessee filed his return of income on 06.10.2017 declaring total income of Rs. 4,15,420/- after claiming deduction under chapter- VIA of the Act. During the year under consideration the assessee has deposited Rs. 1,10,000/- in saving bank account which consists of Rs. 7,00,000/- in Central bank of India and Rs. 10,000/- was deposited in HDFC Bank. The brief summary of cash deposited along-with bank details is attached herewith. ....
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....account maintained with Central Bank of India The confirmation of same from the bank has been attached herewith. The balance cash in hand amount consist of notes which were still valid and acceptable in old note currency. Therefore, it is clear that the cash deposit made during demonetization period is but of balance available on hand." 6. However, the Assessing Officer rejected the contention of the assessee and observed that in absence of any satisfactory explanation with respect to nature and source of cash deposit made during the demonetization period to the extent of Rs. 7,00,000/- remains unexplained and constitutes income of the assessee for the year under consideration, the same was treated/assessed as unexplained money u/s. 69A ....
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....ugh 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. I note that during the assessment state, the assessee submitted the following documents and evidences, viz: (1) Response to notice u/s 143(2) of the I.T. Act, 1961 along with submission and attachment dated 27.09.2019 (vide Pb.3-12), (2) Response to notice u/s 142(1) of the I.T. Act, 1961 along with submissions and attachments dated 27.09.2019 and explained the source of cash deposit (vide Pb.13 - 38), (3) Response to notice u/s 142(1) of the I.T. Act, 1961 along with submissions and attachments dated 05.12.20....
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....opening cash balance at the beginning of 01.04.2016. Apart from this, the assessee is a partner in M/s Shivam Polishing LLP and from the partnership firm, the assessee has received remuneration to the tune of Rs. 10,70,000/- and profit to the tune of Rs. 12,73,620/-. The assessee has submitted the cash deposited during the demonetization and the summary thereof which is placed at paper book page nos.18 to 19 and hence it is quite clear from the cash book, cash flow statement and cash withdrawal from the bank, that assessee has explained the source of cash deposit in bank account in a satisfactorily manner. Hence, I am not inclined to accept the contention of the Assessing Officer in any manner and hence the addition so made is deleted. Henc....