2024 (11) TMI 1018

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....ances of the case and as per law, the CIT (A) is not justified in confirming the addition to the extent of Rs. 34,30,812/- on account of cash deposited in bank account. 2. On the basis of the facts and in the circumstances of the case the CIT (A) is not justified in granting only partial relief and confirming the addition to the extent of Rs. 34,30,812/- on account of cash deposited in bank account, by holding that out of the said cash deposits of Rs. 67,86,500/- the appellant has paid only Rs. 33,55,688/- to M/s. Sapat International, particularly when almost entire cash deposits in the bank account are paid to M/s. Sapat International for purchase of goods. 3. On the basis of the facts and in the circumstances of the case the CIT (A) i....

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.... 98,520/-. The case of the appellant was selected under CASS for Complete Scrutiny. The Assessing Officer has assessed the income of Rs. 79,85,020/- by making addition of Rs. 67,86,500/- u/s.69A on account of unexplained cash deposit in Janta Co-operative Bank Ltd., Malegaon during demonetization period and completed assessment u/s. 144 of the Act. 2.1 The Assessing Officer in the assessment order in paragraph 4 analysed the sales of the assessee as under : Particulars Amount in INR Average monthly Cash Sale for F.Y. 2016-17 Rs. 87,88,200/- Average monthly Cash Sale for F.Y. 2016-17 (excluding the cash sale of October' 2016) Rs. 78,51,356/- Hike in cash sale during the Month of Oct' 16 over the average annual sale (Rs. 1,90,93,4....

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.... assessment proceedings and before the ld.CIT(A). Though Ld.CIT(A) had given part relief, however, part of the addition is sustained by ld.CIT(A) on wrong facts and hence needs to be deleted. Submission of ld.DR : 5. The ld.DR for the Revenue relied on the order of the Assessing Officer and ld.CIT(A). Findings & Analysis : 6. We have heard both the parties and perused the records. In this case, AO has made addition of Rs. 67,86,500/- which was cash deposited by the assessee in Janata Co-operative Bank, Current Account on 11.11.2016 and 15.11.2016 in the form of Demonetized Currency. 6.1 It is a fact that assessee is a Wholesaler. He is a Wholesaler for Sapat Brand Tea. During the assessment proceedings, assessee had explained that the ....

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.... is a Current Account in the name of Jaihind Kirana Stores. On perusal of the said Bank Statement, it is observed that assessee has been regularly depositing cash. For example, on 04.04.2015 Assessee deposited Rs. 13,51,000/- and Rs. 50,000/- cash; on 04.04.2015 assessee has deposited cash twice in the same day. Then, on 06.04.2015 Assessee has deposited Rs. 7,09,000/-; on 07.04.2015 Assessee has deposited Rs. 12,24,000/-. Similarly, on every alternate day there were transactions of cash deposits made by the assessee. 7. Now coming to the F.Y.2016-17 on 02.04.2016, there were cash deposits on three occasions in a day i.e. Rs. 8,40,000/-, Rs. 2,00,000/- and Rs. 2,60,000/- totaling to Rs. 13,00,000/-. Similarly, on 05.04.2016, there were cas....