2024 (11) TMI 558

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....9, passed under Section143(3) of the Act. 2. The Revenue has raised the following grounds of appeal: "1. In the facts and in circumstances of the case the Ld.CIT(A) erred in deleting the additions made u/s. 68 of the Income Tax Act, 1961 to the tune of Rs. 4.36.113/ without going through the merits of the case that there is no explanation available in any way at the assessment stage, hence, deposit of funds remained unexplained. The only economic rationale behind such transaction is to provide accommodation entries for bringing back the unaccounted money/fund of the clients to their regular books of accounts 2 The case falls under exceptional clause 3.1(h) of CBDT's Circular N 0.5/2024 dated 15.03.2024 since it is a case of accommo....

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....satisfied with the addition made by the Assessing Officer, assessee went in appeal before the Learned CIT(A). The Learned CIT(A) allowed the appeal holding that the assessee has furnished copy of cash book for financial years 2015-16 and 2016-17 demonstrating consistent monthly cash balance of more than 8 lacs. The Learned CIT(A) further observed that the AO"s findings that the assessee has more than 7 lacs in demonetization currency notes was based on speculation and not supported by any evidences. Therefore, the Learned CIT(A) directed the Assessing Officer to delete the addition made under Section 68 of the Act. 6. Aggrieved by the order of Learned CIT(A), Revenue has now filed this appeal before this Tribunal raising two grounds of app....

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....on after considering the all relevant evidences. He further argued that the Revenues appeal should be dismissed as the tax effect was below Rs. 50 lacs and the case did not fall under any exceptional as per the CBDT"s Circular. 9. We after hearing the rival submissions of parties and perusing the material available on record. We find that the appeal was filed by the Revenue does not fall under any exceptional clause as argued by Learned Departmental Representative, the case primarily involves on the addition made during the demonetization period and the Learned CIT(A) has rightly observed that the assessee had sufficient cash balance during the relevant financial year as evidences by the cash book. We further note that the Learned Assessin....