TaxTMI 
TaxTMI 
TaxTMI 
2024 (7) TMI 1051
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....s 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 circumstances of the case the Ld. CIT(A) erred in law in de....
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....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 year. Further, the assessee has also not brought on record as to why there w....
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....oney, 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 remained unidentifiable. Reliance is placed on the decisions of the Hon'ble Supreme Court dated 27-....
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....ubmitted 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 justified at all. It has been contended that this is the first year of the assessee and therefore, there was no ca....
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....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 that the cash sales were non-genuine. All these sales were shown in books of account and VAT returns also. The sales....