2024 (5) TMI 32

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....he assessment year 2017-18. 2. Brief facts of the case are that appellant assessee filed income tax return for the assessment year 2017-18 on 14th October, 2017 declaring income of Rs. 32,89,510/-. The case was selected for scrutiny under CASS and notice dated 24.09.2018 under section 143(2) was issued. Learned ACIT ("AO") passed assessment order under section 143(3) of the Act made disallowance of Rs. 65,49,189/- under section 69A read with section 115BBE of the Act on allegation that assessee failed to establish that the cash deposited during demonetisation period was as part of the normal business receipts. 3. Assessee preferred an appeal before the Learned CIT(A) on 13.01.2020. Learned CIT(A) vide order dated 31.03.2023 upheld dis....

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....,50,60,750 AY 2017-18 41,12,619.50 62.40 25,66,52,001 Sales AY 2016-17 37,19,652.10 58.98 21,94,04,378 AY 2017-18 40,66,442.20 64.25 26,12,88,548 The assessee had further tabulated the difference arising out of difference in average per unit price for both years and difference in volume sold in each in the table below:- Description Amount(INR) Difference arising only due to difference in average/unit price of petrol, speed petrol and diesel 37,29,298 Difference arising only due to increase in volume of petrol, speed petrol and diesel sold 26,89,170 Others (including lubricant sold etc.) 1,30,721 Addition made by the AO under Section 69A 65,49,189 6. The table showed ....

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.... table on the basis of statement of profit and loss by the assessee. The statements were duly verified by independent auditors report. 9. Hon'ble Supreme Court in the case of Lalchand Bhagat Ambica Ram vs. CIT (1959) 37 ITR 288 has held that when entries in books of account in regard to cash balances were held to be genuine, there was no escape from conclusion that assessee had offered reasonable explanation as to source of all high denomination notes which it encashed on 19th January 1946 and it was not open to ITAT to accept genuineness of those books and accept assessee's explanation in part and reject same in regard to balance sum. It was observed that the ITAT in arriving its conclusion indulged in suspicions, conjectures and surmis....