TaxTMI 
TaxTMI 
2022 (9) TMI 1647
X X X X Extracts X X X X
X X X X Extracts X X X X
....ined the availability of funds (Old SBN's), which was accepted by the Assessing Officer. 5. The Government had allowed the time to deposit in old Currency in Bank upto December, 2016 and the appellant had deposited the same within the time allowed. 6. That the main objection of the learned Assessing Officer was as to why the entire deposits were not made on a single day whereas there was no such binding of the appellant. 7. That the learned C.I.T. (Appeals) too confirmed the addition without properly considering the facts in a judicious way and without allowing proper opportunity which is quite illegal. 2. The Registry has pointed out that there is a delay of two days in filing of the appeal. The Assessee has filed an application dated 13.6.2022 for condonation of delay, stating therein that the date of order of the ld. CIT (A) is 26.11.2021, which was received by the assessee on the same day, and the Form No. 36, i.e., the 'Form of Appeal to the Appellate Tribunal' along with other documents for filing of the appeal before the Tribunal, which was sent through Registered Post on 24.1.2022 and the same was received by the Registry of the Tribunal at Lucknow on 27.1.2....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Bank Statement where cash were deposited, Copy of Sales Account and Copy of Purchase Account, Daily Sale Register, Ledger, Cash book, Stock Register, Purchase bills of Gold Jewellery and Silver Ornaments and Vouchers for Expenses were produced before the Assessing Officer; that all these details were duly examined by the Assessing Officer and no adverse view has been taken regarding the book results and sale and purchases made by the Assessee during the year; that the assessee had duly explained before the Assessing Officer that during the Demonetization Period, the assessee had deposited cash in the bank account being funds available in Cash Book as Cash-in-Hand, being the Sale Proceeds of Gold Jewellery and Silver items up to 08.11.2016; and that the details of Cash Deposit with I.C.I.C.I. Bank, Account No. 105405001144 at Lakhimpur are as under:- Date Amount 17.11.2016 9,90,000.00 18.11.2016 20,00,000.00 23.11.2016 19,10,000.00 TOTAL : 49,00,000.00 8. The ld. Counsel for the assessee has further contended that the Assessing Officer verified these details and accepted the Cash Deposits of Rs. 9,90,000/- and Rs. 20,00,000/-, deposited on 17.11.2016 and 18....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gat Ambica Ram vs. CIT' [1959] 37 ITR 288 (SC). 5. 'Shri Shubhash Chandra Sharma vs. ITO-2(2)', ITA No No. 327/Agra/2017, order dated 31.5.2019. 6. 'M/s Premier Car Sales Ltd. vs. ACIT', ITA No. 450/LKW/2018, order dated 26.4.2019. 7. 'Shri Suresh Khatri vs. ITO', ITA No. 781/LKW/2017, order dated 26.6.2020. 11. On the other hand, the ld. D.R. has contended that whole of the cash, during the demonetization period, should have been deposited by the assessee on a single day, instead of depositing the same on different dates; that the assessee failed to explain and substantiate the credits in the Bank accounts of the assessee; and that therefore, the action of the authorities below is justified and no interference is called for in their orders. 12. Heard. It is an undisputed fact that the assessee, during the demonetization period, had deposited amounts in cash, totaling to Rs. 49,00,000/-, on various dates, as detailed below, with ICICI Bank, in Account No. 105405001144: Date Amount 17.11.2016 9,90,000.00 18.11.2016 20,00,000.00 23.11.2016 19,10,000.00 TOTAL : 49,00,000.00 13. The assessee is engaged in purchase and sale of Gold Jewellery a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year:" 16. As per section 68, the sum found to have been credited in the books of account, for which, the assessee offers no explanation, is deemed to be the income of the assessee, whereas in the instant case, the assessee had duly explained the source of sales, produced the sale bills and had admitted the same as revenue receipt. Once there is no defect in the purchases and sales and the same are matching with the inflow and the outflow of stock and cash, there is no reason to disbelieve the sales. The Assessing Officer had examined the requisite details furnished by the assessee and did not point out any mistake therein. The Assessing Officer had not doubted the Sales made by the Assessee, which sales stand duly disclosed in the monthly VAT Returns too. The VAT Returns of the assessee have never been revised/rectified after the demonetization and the VAT assessment of the assessee firm has been completed by VAT Officer, Commercial Tax Department, wherein the Sales, Purchases and Stock of the Assessee have been duly accepted. The Assessing Officer had accepted the Tradi....