TaxTMI 
TaxTMI 
2024 (7) TMI 1051
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....appeal are that the assessee, electrical goods trader, filed its Income Tax Return (In short, the 'ITR') on 31.10.2017 declaring income of Rs. 4,700/-. The case was scrutinized and the consequential assessment was completed at income of Rs. 65,58,040/- under section 143(3) of the Income Tax Act, 1961 (In short 'the Act'). The Ld. Assessing Officer (In short, the 'AO') held the cash sales aggregating to Rs. 65,53,340/- deposited in the bank during the course of demonetization period non-genuine and taxed it under section 69A r.w.s. 115BBE of the Act. Aggrieved, the assessee preferred appeal before the CIT(A) and succeed there. The revenue challenged the order of the Ld. CIT(A) on the following grounds: - "1. On the facts and circums....
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....th November, 2016 was only Rs. 2,000/-. Revision of VAT returns was also questioned by the AO to infer that the cash sales were non-genuine. 4. For proper appreciation of facts, the Ld. Sr. DR drew our attention to paras 2.2 onwards of the assessment order. The same is reproduced as under:- "2.2 The quantum of the cash sales stated to have been achieved during the year was Rs. 58,62,991 while the details furnished thereof depicted the cash sales achieved during the year was around Rs. 65,53,340. Interestingly, these cash sales were achieved on nine days only in the month of October 2016 i.e. 05-10-2016, 06-10-2016, 07-10-2016, 18-10-2016, 19- 10-2016, 02-01-2017, 16-01-2017, 17- 01-2017 and 18-01-2017 during the entire financial....
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....of Section 69A of the Act would show that in cases where the nature and source of acquisition of money, etc. owned by the assessee is not explained at all, or not satisfactorily explained, then the value of such money is deemed to be the income of the assessee. This provision of the Act treats unexplained money as deemed income where the nature and source of cash deposits in the banks remains not explained or satisfactorily explained. No doubt, the assessee has huge cash deposits in his bank accounts but the nature and source of such credits and cash deposits were not at all explained. Hence, the limbs of Section 69A of the Act stands qualified in the case of the assessee i.e. the assessee was found to be owner of the money and the source r....
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....revised VAT returns, retail invoices, etc. and submissions filed before the AO and Ld. CIT(A). The Ld. AR submitted that the cases cited in the assessment order were factually different than that of the present case. He also placed reliance on various decision of the Tribunal including decisions of the coordinate benches. Copies of such decisions were also submitted by the Ld. AR. 5.1 The Ld. AR contended that the AO had not doubted any purchase, stock-in-trade, book results, etc. It was submitted that the entire purchases were imports only after paying custom duty. The Custom Authority had not doubted any import. It was further reiterated that the books of account had not been rejected by the AO; therefore, doubting sales were not justi....
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....he Act, which tantamount to double taxation being contrary to the law and accounting principles. He questioned the AO's finding treating cash sales shown in the P & L account as genuine and taxing the business income embedded in such sales and again taxing such sales as unexplained deposits. 5.3 Before us, the Ld. AR submitted that the cash deposits were out of sales made by the respondent/assessee. He further submitted that the details of the deposits in bank account along with sales register and VAT returns were also filed before the AO and the CIT(A). However, the AO brushing aside all these documents including salevouchers/retail invoices containing all required details therein placed at page no. 306 to 719 of the paper book held tha....
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.... 6.2 The issue before us is with respect to addition of Rs. 65,53,340/- made on account of cash deposits during the demonetization period. It is an admitted fact that the respondent/assessee, engaged in the business of trading of Imported Electrical Goods, has made cash sales as well as credit sales. It has maintained sales vouchers and filed VAT return within the stipulated time period. The revision of VAT return has not affected the turn over shown in the original VAT return. Before us, revenue has not placed any material on record to demonstrate that the details of cash sales shown by the respondent/assessee are fictitious/bogus. The purchases are entirely through imports. Further, the revenue has also failed to place any material on t....