TaxTMI 
TaxTMI 
2024 (10) TMI 853
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....law where an appeal is filed before the Tribunal against the order of the ld. CIT(A)-NFAC not justified in upholding the impugned addition of Rs. 34,14,000/-made by AO, on account of cash deposited during demonetization period without appreciated that: i) The appellant company has deposited cash during the demonetization period out of the cash sale made to the different parties before the demonetization period. ii) The ld. CIT(A) as well as the Assessing Officer erred and bad in law by not considering that complete cash sales cannot be considered doubtful because the sale is made from the purchase available in the stock register maintained properly by the appellant. iii) The CIT (A) as well as learned assessing officer erred and bad i....
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....atory show cause notice as mandated in CBDT Instruction No. 20/2015 dated 29.12.2015." 6. The ld. DR strongly objected to the admission of this additional ground stating that no point of law is involved and the assessee is raising the additional ground purely on facts and, therefore, as per the ratio laid down by the Hon'ble Supreme Court in the case of NTPC 229 ITR 383, such ground cannot be allowed to be raised at this stage. 7. Per contra, the ld. Counsel for the assessee stated that all the relevant details are very much on record and as per CBDT Instruction No. 20/2015 dated 29.12.2015, the impugned assessment order is null and void ab initio. The ld AR relied on the judgment of the Hon'ble Supreme Court in the case of NTPC 2....
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....ve huge difference and sustained the addition made by the Assessing Officer. 13. Aggrieved, the assessee is in appeal before us. 14. The ld counsel of the assessee has vehemently argued that exhaustive evidence like Cash Book with cash deposit summary, Sales Tax returns, Detailed cash deposit summary, Detailed cash deposit summary with source of cash deposited were filed during assessment proceedings. 15. Before us, the ld. counsel for the assessee vehemently submitted that the AO had the details of cash sales as per cash book and cash summary flow chart and he made assessment without rejecting the trading results of the assessee. It was submitted that it amounted to double taxation of the same profit. It was argued that cash flow statem....
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.... basis of undisputed fact that there is no SCN issued prior to impugned asst, same is fatal defect leading to nullification of impugned assessment. The ld. counsel for the assessee referred to para 4 of CBDT Instruction No.20/2015 dated 29.12.2015 which is reproduced as under :- 'In all cases under scrutiny, where the Assessing Officer proposes to make additions or disallowances, the assessee would be given a fair opportunity to explain his position on the proposed additions/disallowances in accordance with the principle of natural justice. In this regard, the Assessing Officer shall issue an appropriate show cause notice duly indicating the reasons for the proposed additions/disallowances along with necessary evidences/reasons forming th....
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....the form of cash sales and has also not substantiated as to how the cash deposits relates to the assessee's unaccounted income. When the AO draws the conclusion that the cash in hand "definitely bears some unaccounted income of the assessee", we find that the AO has travelled in the realm of conjectures. We also note that the Assessing Officer's conclusion that 60% of the cash deposited constitute unaccounted deposits to be added u/s 68 is not supported by any cogent and material evidence. 21. In that view of the matter, we are of the considered view that the ratio of Hon'ble Supreme Court decision in case of Lalchand Bhagat Ambica Ram vs CIT (1959) 37 ITR 288 forcefully apply to the facts and circumstances of the instant case. The Hon'ble....