TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 641
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....as a delay of eight days. It was accordingly submitted that the delay so happened in filing the present appeal may be condoned and the appeal be admitted for adjudication. 4. The Ld. DR is heard who has not raised any serious objection to the condonation of delay. 5. After hearing both the parties and considering the material available on the record, we find that there was reasonable cause for delay in filing the present appeal which is hereby condoned and the appeal of the assessee is admitted for adjudication. 6. In the present appeal, Assessee has raised the following concise/amended grounds of appeal: 1. That the Ld. Commissioner of Income Tax (Appeals) has erred in confirming the order of Assessing Officer and, thereby, confirming the addition of Rs. 19,13,078 on account of 'cash deposits' in the regular bank account of the assessee. 2. That the Ld. CIT(A) has failed to appreciate that the books of accounts have been accepted and not rejected u/s 145(3) and cash deposited in the books of accounts is out of regular sale proceeds of the assessee's business, for which, there was sufficient stock and, thus, the confirmation of addition is on surmises and conjectures. ....
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....iced after 05/10/2016. Further excess cash deposit of Rs. 2,00,000/- in the bank were confronted to the assessee however no satisfactory reply has been furnished. Thereafter taking into consideration the entirety of facts and circumstances of the case, source of cash deposit amounting to Rs. 30,68,350/-(Rs. 17,13,078/- plus Rs. 13,55,272/-) was found to be explained by the assessee. However, the remaining amount of Rs. 19,13,078/- (Rs. 50,00,000/- minus Rs. 30,86,922/-) was considered as undisclosed cash credit in the book of account of the assessee which were brought to tax under section 68 r.w.s 115BBE of the Act. 8. Being aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) who has since confirmed the said action of the AO. As per the Ld. CIT(A), the assessee had deposited Rs. 48 lacs during the demonetization period. Out of this, Rs. 17,13,078/- was received from persons having PAN and Rs. 30,86,922/- was received from persons without PAN. The appellant has also shown cash balance on 05/10/2016 at Rs. 13,55,272/-. Prior to October, 2016, there was very nominal cash sales. There was no cash deposited in bank prior to 13.11.2016 (i.e. before demonetization)....
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....Tribunal have held time and again that where sales have been declared by the assessee than making addition of the same under section 68/69 of the Act will amount to double taxation. It was submitted that in the instant case, the sales have been accepted as per the trading account filed by the assessee and there is no new unexplained credit/investment since there is available stock with the assessee and the opening stock, purchases, sales, closing sock have been accepted and, thus, on account of the reduction of stocks, the sale proceeds have been recorded in the regular books of accounts and the profit embedded in such sale proceeds have also been offered to tax and taxed accordingly, by the Assessing Officer and, therefore, the Ld. Assessing Officer has grossly erred in making the addition of alleged unexplained cash credit, which amounts to double addition. Reliance was placed on the following decisions: * Smt. Charu Aggarwal & Others Vs. DCIT reported in 140 Taxmann.com 588 (Chd Trib) * ACIT Vs. Ramlal Jewellers P. Ltd. reported in 154 taxmann.com 584 (Mum Trib) * ACIT Vs. Hirapanna Jewellers 189 ITD 608 (Vishakhapatnam Bench) * ACIT Vs. Himachal Fibres Limited in ITA No....
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....er has not rejected the books of accounts of the Assessee and has accepted the opening stock, purchases and closing stock. The sales have been doubted only on the basis of assumptions, surmises and conjectures that the Assessee has increased cash sales for the year under consideration. It was submitted that the assessee relies on the various authorities on the subject that no addition can be made u/sec 68 of the Act on account of recorded sales by the Assessee and the addition so made by the AO and confirmed by the CIT(A) be directed to be deleted. 11. Per contra, the Ld. DR has relied on the order and findings of the lower authorities which we have taken note of and hence, not being repeated for the sake of brevity. 12. We have heard the rival submissions and purused the material available on record. The assessee has deposited a sum of Rs 48 lacs on 13/11/2016 and a sum of Rs 2 lacs on 22/02/17 in its bank account maintained with Axis Bank. The source of such cash deposits has been explained by the assessee as out of its cash sales so undertaken and it has also been explained that such cash sales are subject to VAT where VAT has been collected and deposited with the government t....