2024 (8) TMI 1361

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....uring demonetization period which has been taxed u/s. 69A r.w.s. 115BBE. The relevant grounds raised by the assessee reads as under:- 1. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming addition of Rs. 27,00,000 under section 69A r.w.s. 115BBE of Income Tax Act, 1961 being cash deposited during demonetization period out of the recovery of trade dues after polish compliance and legal cases. 2. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming addition of Rs. 5,00,000 under section 69A of Income Tax Act, 1961 without considering the facts that cash was deposit out of past savings and household savings of appellant. 3. On the facts and circums....

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....,50,000/- 3. Kotak Mahindra Bank 2311714324 2,50,000/- Total Rs. 32,00,000/- 4. In response to the show-cause notice to submit the nature of source of cash deposits, assessee submitted that since he has been filing his return of income u/s. 44AD and offered 8% net profit of total recipts as income for the year under consideration, therefore, he was not maintaining any books of accounts. Regarding source of cash deposits, assessee submitted that he has received dues from the party name M/s. Sarita Exports in cash amounting to Rs. 27,00,000/- during the demonetization period. Earlier this party had given cheques to the assessee in the earlier years which was dishonored following which assessee had filed police complaint a....

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....y source of income is through this business. Further, the sales have been recorded in cash which was regularly deposited in the bank account. Since assessee's turnover was ranging between 25-35 lakhs in a year, he has been showing the profit under presumptive rate of 8% u/s. 44AD not only in the past but also in the subsequent years. Even if assessee's explanation that assessee has received cash of Rs. 27,00,000/- from M/s. Sarita Exports has been found to be not acceptable in view of various findings given by the ld. AO and assessee could not rebut such finding, then source of these cash is out of business only. Looking to the fact that assessee was showing income from business of retail sale of ladies garments, then the cash deposits coul....