TaxTMI 
TaxTMI 
2024 (11) TMI 891
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.... the appeal was filed only on 30.04.2024. Thereby, there is a delay of 28 days. The reason stated by the AO in his affidavit reads as under:- "4. It is submitted before the Hon'ble Tribunal that the delay has happened because in this case, TP issue was involved and to prepare the scrutiny report, TPO's comment was necessary. This office has received the necessary TPO's comments on 06.05.2024 for the above mentioned case. Therefore, the scrutiny report to the PCIT-3, sent on 06.05.2024 from this office." 2.1 Since there is a delay of 28 days and assessee has not objected to the same, we are inclined to condone the delay and admit the appeal. 3. The only issue in this appeal of Revenue is against the order of CIT(A) deleting the addition made by AO being cash deposited during the year of Rs. 3.05 crores as unexplained cash credit and added u/s. 68 of the Act and also taxed under the provisions of section 115BBE of the Act. The Revenue has raised the following grounds:- 2. The Ld. CIT (A) has erred in not addressing the various facts and findings brought out by the Assessing Officer. 3. The Ld. CIT (A) has failed to note the contradictory claims by the assessee of receiving ca....
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....ss of debtors from whom it have claimed to have received cash and have deposited. The AO also required the assessee to produce cash book, bank book and complete details like item sold, sale bill, cash receipt voucher for whom cash sales were done. The AO also noted that out of the debtors, the assessee has received major amounts from the following three Party name Amount received Orient enterprises, Rajkot 1,79,81,532 S K Enterprise, Hyd 30,02,815 D K Traders, Hyd 23,09,313 He analyzed the same and noted that the assessee has incurred cash expenses of Rs. 4,78,067/- whereas cash received and deposited in bank accounts is amounting to Rs. 3,05,19,920/-. He also noted that the available cash on various dates i.e., above Rs. 1.50 crores remains which is unusual and cannot be believed. The AO noted that there are VAT sales against cash collection. Still, according to him unusual and not genuine. He recorded this fact in para 4 as under:- 4.The above unreasonable activities proved that that assessee manipulated the books of account in such a way that there was available cash balance as on 08/11/2016 and matched the same with cash deposits. Further, due to various anomalie....
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....sh credit and added as income of the assessee u/s 68. It is to be noted that the unexplained cash credit of Rs. 3,05,00,000/-is taxed @ 60% without set off of any loss or deduction as per provision of section 115BBE of the Act. Accordingly, he added the cash deposit of Rs. 3.05 crores as unexplained cash credit and added to the income of the assessee u/s. 68 of the Act. The assessee's unexplained cash deposit of Rs. 3.05 crores was taxed u/s. 115BBE of the Act. Aggrieved, assessee preferred appeal before CIT(A). 5. The CIT(A) deleted the addition by accepting the submissions of the assessee that the cash receipt by various sources i.e., cash sales, debtors outstanding realization and debtors of current year realized is matching with the VAT returns and hence, he accepted the cash deposited during the year before demonetization and treated the cash-in-hand as on 08.11.2016 at Rs. 3.05 crores as explained by observing as under:- 6.1. After the perusal of the submission made by the appellant, during the appeal proceedings, I have issued a notice and called for the following documents: 1. Copy of VAT Return. 2. VAT assessment orders if any. 3. Cash book details. 4. Ledger c....
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....ved, Revenue is in appeal before the Tribunal. 6. We have heard rival contentions and gone through facts and circumstances of the case. The ld.Senior DR relied on the assessment order and stated that the assessee in assessment years 2015-16, 2016-17 & 2018-19 has not carried out cash sales and cash collection in comparison to assessment year 2017-18 abnormal high. She argued that there is abnormal cash balance available with the assessee as on 08.11.2016 i.e., amounting to Rs. 3,09,45,277/- out of which Specified Bank Notes i.e., demonetized currency is Rs. 3,05,14,820/-. According to her, the alleged claimed source of cash i.e., cash sales, cash collection from debtors outstanding in previous year and realization of current debtors claimed by assessee are not genuine and hence, the AO has rightly made addition of this cash deposit of Rs. 3.05 crores as unexplained cash credit u/s. 68 of the Act and charged to tax u/s. 115BBE of the Act. We noted that the assessee has explained the cash deposit in SBNs received during demonetization period on account of cash sales during the relevant assessment year, realization of debtors outstanding in previous years and also debtors during curr....
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....s and thus, even if assessee furnish necessary evidence, the assessee cannot accept specified bank notes after demonetization and the explanation offered by the assessee cannot be accepted. No doubt specified bank notes of Rs. 500 & Rs. 1000 have been withdrawn from circulation from 09.11.2016 onwards. The Government of India and RBI has issued various notifications and SOP to deal with specified bank notes. Further, the RBI allowed certain category of persons to accept and to deal with specified bank notes up to 31.12.2016. Further, the specified bank notes (cessation of liability) Act, 2017, also stated that from the appointed date no person can receive or accept and transact specified bank notes, and appointed date has been stated as 31.12.2016. Therefore, there is no clarity on how to deal with demonetized currency from the date of demonetization and up to 31.12.2016. Therefore, under those circumstances, some persons continued to accept and transact the specified bank notes and deposited into bank accounts. Therefore, merely for the reason that there is a violation of certain notifications/GO issued by the Government in transacting with specified bank notes, the genuine explan....