2024 (7) TMI 834

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.... The assessee aggrieved and is in appeal before us raising following grounds:- "1. In the facts and circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) erred in concluding that the learned AO rejected the books of accounts of the appellant. 2. In the facts and circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) erred in ignoring the fact that the accounts of the appellant were audited by a qualified Chartered Accountant under the provisions 44AB of the Income- tax where the Auditor has certified that the proper books of accounts were maintained by the appellant. 3. In the facts and circumstances of the case and in law the learned Commissioner of Income Tax (Appeals) e....

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....income of Rs. 4,93,740/-. The case of the assessee was selected for scrutiny for verification of cash deposit during demonetization period. It is found that assessee has deposited in his current bank account Rs. 34,13,774/-, out of which Rs. 33 lacs were deposited during demonetization period. The assessee was asked to explain but assessee did not explain. The learned Assessing Officer noted that the assessee hardly has any cash sales further, the cash deposited by the assessee were transferred to his sister concern, M/s Satawat Textile. Part of this sum was transferred to the assessee's own account. In absence of any information the assessment order under Section 143(3) of the Act was passed on 27th December, 2019. By making an addition of....

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....eady shown in the books of account and tax has been paid on such income. He submits that facts have been wrongly recorded by the learned CIT (A) that books of account of the assessee are rejected. He submits that books are not rejected. He further stated that books of account of the assessee are audited and assessee has shown the net profit 1.38% for this year compared to 1.66% in earlier year. He further submitted that this year the gross profit shown by the assessee is 7.56%, whereas in earlier year it was 10.16%. He further referred to cash book for F.Y. 2016-17 to show that day to day cash book is maintained. He further referred to the bank statement of Kotak Mahindra Bank and submitted that assessee has deposited cash in his bank accou....

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....available with the learned Assessing Officer, he should have made an enquiry to disprove the cash sales prior to demonetization. This exercise has not been done. It is also true that cash sales are also part of the trading result offered for taxation by the assessee which is not disputed. The mere allegation that books of account are manipulated without its rejection or without bringing on record any positive evidence, the addition could not have been made of Rs. 33 lacs on account of cash deposit. Mere cash deposit or cash sales, without pointing out any latent, patent and glaring defect in books of accounts, books of accounts cannot be rejected. Ld OA has to show that cash sales is not coupled with delivery of goods, or on that assessee d....