TaxTMI 
TaxTMI 
2025 (1) TMI 505
X X X X Extracts X X X X
X X X X Extracts X X X X
....is against the confirmation of addition by the ld. CIT(A) as made by the ld. Assessing Officer towards cash deposited during the demonetization period and also against the taxing the same u/s 115BBE of the IT Act. 04. The facts in brief are that the assessee filed his return of income on 20.04.2017, declaring total income at Rs. 12,80,028. The case of the assessee was selected for limited scrutiny for examination of cash deposited during demonetization period. The statutory and other notices were issued along with questionnaire which were duly served upon the assessee. The assessee replied the said notices by filing the necessary evidences besides furnishing computation of total income which showed evidenced the additional income on acco....
X X X X Extracts X X X X
X X X X Extracts X X X X
....posit of Rs 42,00,000/- narrated above is unexplained and hereby treated as income of the assessee for the FY 2016-17 and added back to her total income u/s 69A of the 1. Tax Act 1961 read with section 115BBE of the l. Tax Act 1961." 5. The ground of appeal No. 1 is general in nature and it does not require any specific adjudication. Accordingly, it is treated as dismissed. 6. The grounds of appeal No. 2 and 5 are inter-related and are in respect of addition of Rs. 42,00,000/- as income u/s 69A of the Act during the FY 2016- 17, treating them as unexplained." 06. After hearing the rival contentions and perusing the available records we note that cash of Rs. 42 lacs were deposited in the bank account of the assessee on t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le are recorded then the same is deemed to be income of the assessee during the financial year if assessee fail to offer any explanation and any satisfactory explanation, which is not in this case. Therefore, the order passed by the ld. CIT(A) may kindly be set aside and the ld. Assessing Officer is directed to delete the addition. 08. Further, the ld. DR contended d that the assessee paid the taxes on the said cash deposits but the assessee has not paid the taxes as per the provisions of Section 115BBE of the Act which provides for charging such income by way of cash deposited at a higher rate. 09. After hearing the rival contentions and perusing the materials available on record. We find that the assessee has deposited cash of Rs. 4....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the ld. DR. We have also considered the different case laws brought on record by the Counsel of the Assessee 481-Chd-2023- Aakriti Jain, Ludhiana and the written submissions filed during the proceedings before us. We are of the view that the finding of the ld. CIT(A) is logical and therefore, correct to the extent that once the purchase and stock of the Assessee has been accepted, there is no reasons to deny sale out of such stock and purchase. We also find that the A.O. has not rejected the books of account of the Assessee, so, once cash purchases / sales based on vouchers had been accepted, there is no point in making addition on the deposit of such cash in the bank account, particularity on cash sales. 9. We have also heard th....