2024 (12) TMI 1374

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....1065377897(1) dated 04.06.2024. The assessment was framed by the Assistant Commissioner of Income Tax, Circle-1, Nagercoil for the assessment year 2017-18 u/s.143(3) of the Income Tax Act, 1961 (hereinafter the 'Act'), vide order dated 30.12.2019. 2. Brief facts of the case are that the assessee is a Trust running a school in Thiruvattur panchayat, catering to students in that remote village and only source of income is out of the fees collected from students. The assessee trust had filed return for the assessment year 2017-18 admitting a total income of Rs. 18,15,130/-. The case was selected for scrutiny by CASS for a reason that high value receipt of cash shown from third parties in response data. In response to Notice under section 14....

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....ficer has made an addition of Rs. 41,16,520/- being the cash deposits made during the demonetization period maintained by Mulagumoodu Branch solely on the ground that the appellant could not bifurcate the deposits made in SBNs and non SBNs in the said branch. The appellant had obtained the said certificate from the bank, Mulagumoodu Branch, showing the breakup of the deposits in SBNs and non SBNs. The above fact of deposit of SBNs only to the extent of Rs. 6,66,500/- at Mulagumoodu Branch was also confirmed by the Assessing Officer in the remand report dated 07.03.2024. Further, the assessee had also established during the remand proceedings that the closing cash balance as on 08.11.2016 was at Rs. 17,82,947/-. In fact, the total deposits m....

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....eard both parties at length and also perused the relevant findings of the ld. Assessing Officer as well as the ld. CIT(A). We find from page 71 of paper book that appellant had obtained the certificate from the Mulagumoodu Branch bank regarding cash remittance details during demonetization period, which shows the breakup of the deposits in SBNs and non SBNs. The breakup of SBNs are only to the extent of Rs. 6,66,500/-. The AO in his remand report dated 07.03.2024 at page 76 of paper book has confirmed the aforesaid factum of deposit. We further, at page 9 of the paper book find that the assessee's closing cash balance as on 08.11.2016 was Rs. 17,82,947/-. Therefore, the assessee has demonstrated the source for such deposits emanating from t....