TaxTMI 
TaxTMI 
2024 (7) TMI 834
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....ax Act, 1961 (the Act), was dismissed. 02. 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 ....
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....ss of trading in cloths. The assessee filed his return of income on 7th November, 2017, a total 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 o....
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....T (A) was reiterated. It was submitted that the cash deposit of Rs. 33 lacs is part of the sales already 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 ba....
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....ior to that without making any enquiry. When the sales invoices on cash sales, the books of account are 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 ....