2024 (8) TMI 919

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....enance is purely based on mere conjecture, suspicion and surmises and that too without rebutting the documentary evidences and explanation so furnished by the assessee appellant. 2.1 That the learned commissioner of Income Tax (Appeals) has failed to appreciate the fact that the books of accounts of assessee - appellant have duly been audited (and also accepted by department) and cash deposit on similar lines have been accepted through out in past and cash sale and deposit thereof is inherent nature of assessee's poultry business. That even in the impugned assessment year, cash sales and deposit in bank thereof from April to 8s November have not been disputed by lower authorities and as such, the addition so made under section 69A is without any basis and needs to be deleted. 2.2 That the learned Commissioner of Income Tax (Appeals) has further failed to appreciate the fact that it was due to government's demonetization policy that the assessee had to deposit the entire cash lying with it in denomination of Rs. 500 and Rs. 1000 currency notes and it is also a matter of public knowledge that subsequent to demonetization cash sales dropped substantially due to lack of cur....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....riod, the assessee has not deposited excess cash. 6. The AO held that the assessee has not provided any details of the persons from whom the said cash has been received. The AO held that the bills of sales furnished on sample basis by the assessee mentions cash in the place where the name of purchasers are to be entered. Therefore, the source of cash deposits with respect to the cash sates cannot be accepted. 7. The AO placing reliance on the judgment of Hon'ble Apex Court in the case of Roshan Di Hatti vs. CIT (SC) 107 ITR 938 and KaleKhan Mohammad Hanif vs. CIT (SC) 50 ITR 1 wherein it was held that the onus of providing the source of money found to have been received by an assessee is on him and when the nature and source of a receipt cannot be satisfactorily explained by the assessee, it is open to the revenue to hold that it is income of the assessee and no further burden lies on the revenue to show that the income is from any particular source. The AO also relied on the judgment of Hon'ble Apex Court in the case of CIT vs. K Chinnathamban (SC) 292 ITR 682 wherein it was held that cash deposits in the bank should be explained by the assessee otherwise it is unexplained incom....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 25,00,000.00 1,92,47,583.00 Jul-14 68,71,136.00 1,24,68,256.60 1,93,39,392.00 87,26,730.00 1,88,07,189.00 Aug-14 70,13,711.00 1,55,62,046.00 2,25,75,757.00 85,20,000.00 2,19,14,546,00 Sep-14 79,84,126.00 1,68,71,236.00 2,48,55,362.00 1,00,30,000.00 2,41,73,665.00 Oct-14 77,13,230.00 1,54,12,047.00 2,31,25,277.00 76,35,000.00 2,24,71,028.00 Nov-14 66,21,774.00 1,42,01,366,00 2,08,23,140.00 44,88,500.00 2,02,48,094.00 Dec-14 58,51,652.00 1,23,86,203,00 1,82,37,855.00 78,28,500.00 1,76,97,653.00 Jan-15 49,26,687.00 99,84,165.00 1,49,10,852.00 41,75,000.00 1,44,78,596.00 Feb-15 44,13,287.00 1,20,57,411.00 1,64,70,698.00 5,00,000.00 1,60,17,408.00 Mar-15 69,84,162.00 1,56,21,045,00 2,26,05,207.00 41,05,500.00 2,19,35,225.00 TOTAL 7,25,20,407.00 16,17,16,014.00 23,42,36,421.00 6,61,38,570.00 22,76,03,636,00 FY 2015-16 FY 2015-16 SALES TOTAL SALES CASH DEPOSIT MONTH WISE PURCHASES CASH SALES CREDIT SALES CASH/CREDIT Apr-15 58,15,746.00 1,89,15,625.00 2,47,31,371.00 34,60,000.00 2,41,40,167.00 May-15 80,58,562.00 2,25,41,587.00 3,06,00,149.00 67,64,400.00 2,98,77,556.00 Jun-15 98,72,585.00 2,79,78,416.0....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....very clear that cash deposited in various banks during the three financial years is as under: Year Cash Deposit Cash Sates Total Seles % of cash deposit to cash sales % of cash deposit to total sales 2014-15 6,61,38,570.00  7,25,20,407.00 23,42,36,421.00 91.20 28.24 2015-16 10,31,57,150.00 11,24,54,735,00 43,27,45,800.00 91.73 23.84 2016-17 6,62,06,486.00 7,54,05,900.00 44,71,45,205.00 87.92 14.81 17. From the above said table it is apparent that the cash has been deposited in the above said years from 87, 92 to 91.20% of cash sales, it is 15% to 28% of the total sales. Cash is being deposited as per trends & practice of business. Cash deposited during the FY 2016-17 is less 87.92% of the cash sales as compared to earlier years of 91.2%. It means that during the period in question, the cash deposits of the assessee is not at variance with the other years. 18. Further, the cash in hand position of the assessee is as under: FY 201617 SALES TOTAL SALES CASH DEPOSIT MONTH WISE PURCHASES Cash in hand CASH SALES CREDIT SALES CASH/CREDIT (in Rs.) Apr-16 1,38,74,562.00  2,41,58,750.00  3,80,33,312.00  1,18,65,000.00  3,69,7....