2022 (11) TMI 1523

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....he impugned order on the following grounds of appeal: "1. In the facts and circumstances of the case and in law, the ld. Commissioner of Income-tax (Appeals) has erred in confirming the order of ld. Assessing Officer making addition of Rs.6,86,000/- u/s.69A of the Income-tax Act, 1961 without considering facts of the case in their entirety. 2. In the facts and circumstances the Id. Commissioner of Income-tax (Appeals) has erred in confirming the order of ld. Assessing Officer invoking provisions of sec.69A of the Income- tax Act, 1961 without fulfilling the requisite conditions. 3. In the facts and circumstances of the case and in law the ld. Commissioner of Income-tax (Appeals) has erred in confirming the disallo....

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....s.1000/- demonetized currency notes upto 24.11.2016 and Rs.500/- demonetized currency notes up to 02.12.2016, but the assessee had continued to deposit the aforesaid demonetized currency even after the aforesaid specified period i.e. up to 30.12.2016, as under: Date Denomination Number Total 25/11/16 1000 544 5,44,000/- 28/11/16 1000 30 30,000/- 01/12/16 1000 1 1,000/- 03/12/16 1000 500 322 56 32,000/- 1,28,000/- 05/12/16 500 53 26,500/- 06/12/16 500 10 5,000/- 08/12/16 1000 500 550 60 5,50,000/- 30,000/- 14/12/16 1000 500 2 17 2,000/- 8,500/- 22/12/16 500 2 1,000/- Total 13,58,000/- On ....

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....od. In the backdrop of his aforesaid observations the A.O made an addition of the aforesaid amount of Rs.6.86 lacs (supra) u/s.69A of the Act. Also, the A.O disallowed 1/4th of the assessee's telephone and mobile expenses of Rs.62,375/- and made a consequential addition of Rs.15,593/- for the reason that neither the assessee had maintained any logbook nor shown on the basis of supporting documentary evidence that the entire expenditure was incurred wholly and exclusively for the purpose of her business. 4. Aggrieved, the assessee carried the matter in appeal before the CIT(Appeals) but without any success. 5. The assessee being aggrieved with the order of the CIT(Appeals) has carried the matter in appeal before me. 6. I have heard ....

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....essee had continued to deposit currency notes of Rs.1000/- and Rs.500/- even after the aforesaid specified period i.e. up to 30.12.2016. On being queried, it was the claim of the assessee before the lower authorities that the demonetized currency notes were deposited out of the cash- in-hand which was generated from the business during the specified period and was available with her as per the books of accounts. In sum and substance, it was the claim of the assessee that the demonetized currency deposited in the bank account was received in the course of her business of running petrol pump within the specified dates as were allowed by the Central Government and had been deposited over the period i.e. 25.11.2016 to 22.12.2016. Although, the ....

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....account; or (ii) that the assessee had received sale proceeds in old denomination currency even after the lapse of the specified time period allowed by the Central Government. 9. After having given a thoughtful consideration to the very basis for making of the addition by the A.O u/s.69A of the Act, I am unable to persuade myself to subscribe to the same. In case, as observed by the A.O, the assessee had in guise of sales deposited her unaccounted money in his bank account, then, the A.O was obligated to have rejected the books of account of the assessee before recharacterizing the corresponding sales as the latters unaccounted money u/s.69A of the Act, which, I find, had not been so done. I, say so, for the reason that while for the A.O....

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....n my considered view would by no means suffice for stamping the same as the assessee's unexplained money u/s.69A of the Act. I, thus, not being able to concur with the view taken by the lower authorities who had failed to come forth with any cogent reason for treating the amount in question as the assessee's unexplained money u/s.69A of the Act, thus, set-aside the order of the CIT(Appeals) and vacate the addition of Rs.6.86 lacs made by the A.O. Thus, the Ground of appeal No. (s) 1 & 2 raised by the assessee is allowed in terms of the aforesaid observations. 11. Adverting to the disallowance of 1/4th of the telephone expenses of Rs.15,593/- made by the A.O, I am of the considered view that as the assessee had not maintained any log book....