TaxTMI 
TaxTMI 
2024 (11) TMI 820
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....ces of the case as well as law on the subject, the learned CIT(A), NFAC has erred in confirming the action of Assessing Officer in invoking provisions of Section 115BBE of the Act and in thereby taxing entire unexplained cash credits at 60 percentages and levying surcharge at 25 percentages which is not applicable on above amount. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 2. Brief facts of the case are that assessee is an individual, filed his return of income for assessment year 2017-18 declaring income of Rs. 1,55,290/-. The case was selected for scrutiny on the issue of cash deposit during demonetization period. During assessment, the Assessing Officer noted that there were huge cash deposits by assessee during demonetization period. The Assessing Officer issued show cause notice, the assessee in e-proceedings to substantiate the source of such cash deposits. The assessee filed reply on 16.11.2019 and stated that cash was available of Rs. 27,17,000/- out of agricultural income and Rs. 14,43,000/- on account of cash-in-hand. The Assessing Officer further noted that no supporting evidence w....
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....ned agricultural income of Rs. 16,64,234/- and from other source of Rs. 7,243/-. During the year under consideration, assessee deposited total cash in his bank accounts of Rs. 46,32,500/- out of which cash of Rs. 27,14,000/- was deposited during demonetization period from 08.11.2016 to 30.12.2016. The figure of cash deposited during demonetization period is wrongly mentioned as Rs. 27,17,000/-, rather it is Rs. 27,14,000/-. The assessee reported the transaction of cash deposits in column No.14 of Part-B of ITR for assessment year 2017-18. The assessee also furnished bank-wise bifurcation cash deposits. The assessee further explained that during assessment, assessee explained the source of cash deposits and submitted that cash of Rs. 12,71,000/- was on account of agricultural income and Rs. 14,43,000/- was from cash-in-hand as on 08.11.2016. The Assessing Officer not accepted the submission of assessee by holding that assessee failed to produce supporting evidence. The Assessing Officer thereafter issued show cause notice as to why amount Rs. 27,17,000/- should not be treated as unexplained cash credit under section 68 of the Act. The Assessing Officer also held that assessee failed....
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....opening cash balance of Rs. 20,32,763/-. The Assessing Officer asked the assessee to prove of opening cash balance but assessee could not prove such cash in hand with evidence. The Assessing Officer rejected the contention of assessee on the ground that assessee has not shown cash-in-hand in three preceding assessment years. Thus, opening cash balance is not justified. Thus, assessee failed to prove with documentary evidence to source of such cash deposits. On the aforesaid observation, Ld. CIT(A) upheld the addition and directed to rectify the figure of Rs. 27,17,000/- to Rs. 27,14,000/- after verifying. No specific finding was given on taxability of addition at enhanced tax rate under section 115BBE. Further aggrieved, assessee has filed present appeal before the Tribunal. 5. I have heard the submission of Ld. Authorized Representative (Ld.AR) for the assessee and Ld. Senior Departmental Representative (Ld. Sr-DR) for the Revenue. At the outset of hearing, Ld. AR for the assessee submits that there is delay of 74 days in filing appeal before Tribunal. The impugned order passed by Ld. CIT(A) on 24.01.2024, physical copy of impugned order was not received through post and no e-m....
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....ished required details though complete details were furnished. The assessee deposited more than Rs. 46,00,000/- in assessment year 2017-18 out of which cash received Rs. 27,14,000/- in the form of Specified Bank Note (in short, "SBN") were deposited. The earlier cash deposited was not doubted by Assessing Officer. The Assessing Office doubted the cash deposited only during demonetization period when the agriculture holding and income from partnership firm, which is substantial, is not rejected by Assessing Officer, the Assessing Officer was not justified in disregarding the submission made by assessee. The Assessing Officer has not made any independent investigation of fact. The cash-in-hand reported in ITR for assessment years 2012-13 and 2013-14 was not doubted. Merely the taxable income is only of Rs. 1,55,000/-, therefore the component of tax-free income and availability of cash-in-hand cannot be doubted without bringing any adverse material on record. The assessee has furnished complete details of agricultural bills, and expenses which were not doubted or rejected by lower authorities. Therefore, making addition @ 100% cash deposit during demonetization, when assessee has no o....
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.... the case, I find that delay in filing of appeal is neither intentional nor deliberate, moreover delay is not unreasonable. Hence, the delay in filing appeal is condoned. Now adverting to the merits of the case. 8. I find that during the year under consideration, assessee has made total cash deposit of Rs. 46,32,500/- out of which Rs. 27,14,000/- was deposited in the form SBN which was doubted by Assessing Office. The Assessing Officer as well as Ld. CIT(A) doubted the source of cash deposits by taking view that assessee has not shown cash-in-hand in the ITR for assessment years 2015- 16 and 2016-17. Before me Ld. AR for the assessee vehemently argued that assessee is an agriculturist and having substantial agricultural income in every year and having substantial cash available. The assessee also filed ITR Form- 4 showing cash-in-hand of Rs. 9,67,166 in assessment year 2012-13 and Rs. 8,25,082/- in assessment year 2013-14. The Ld. AR of the assessee by referring the aforesaid fact has submitted that Assessing Officer was not justify in rejecting the cash book, when in earlier two assessment years as the assessee has disclosed net agricultural income of Rs. 2,87,660/- and Rs. 6,5....