2024 (8) TMI 337

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.... 2017-18. 2. The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in confirming the addition made on account of cash deposits made during the demonetization period in the sum of Rs 2,66,27,354/- in the facts and circumstances of the case. 3. We have heard the rival submissions and perused the materials available on record. The assessee is engaged in the business of sale and purchase of readymade garments, fabric, accessories and customized tailoring. The return of income for the Asst Year 2017-18 was filed by the assessee on 28.9.2017 declaring total income of Rs 2,04,12,120/-. The ld. AO observed that the assessee had made total cash deposits of Rs 4,78,91,000/- during the demonetization period i.....

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....posits made in earlier year, during the year and in succeeding years as below:- AY 2016-17 - Rs 33,96,04,041/- AY 2017-18 - Rs 28,16,00,985/- AY 2018-19 - Rs 34,30,09,140/- AY 2019-20 - Rs 38,30,02,576/- b) Month wise bills issued for the period 1.4.2015 to 31.3.2016 and 1.4.2016 to 31.3.2017 c) Copy of sample sales bills made to various parties d) Details of cash sales, cash receipts, cash deposits made in Financial Year 2015-16. e) Details of cash sales, cash receipts, cash deposits made in Financial Year 2016-17 (i.e. the year under consideration). f) Summary of Sales for Financial Year 2016-17 (i.e. the year under consideration) g) Copy of VAT Retu....

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....he return of income as the said figure is included in the total sales of 45,07,51,109/- credited in the profit and loss account. The ld. AO had ultimately completed the assessment by starting from the income returned by the assessee and further made an addition of Rs 2,66,27,354/- thereon. Hence it is only a double addition made by the ld. AO, without understanding the fundamental arithmatics and basics of accounting. The basis of addition made by the ld AO has got no support from any of the provisions of the Act. This fundamental error committed by the ld. AO had been upheld by the ld. NFAC in the instant case. Be that as it may, we find that the assessee had furnished all the requisite documents to prove the cash deposits made by it in th....