2025 (3) TMI 45

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.... "1. On the facts and in the circumstances of the case and in law the Ld. CIT(A), NFAC erred in confirming the addition made by the Assessing Officer in a sum of Rs. 52,35,000/- being the amount of cash deposited in banks during the demonetization period treating the same as unexplained invoking the section 68 of the Act. The order being arbitrary, fallacious, unlawful and untenable must be quashed with directions for relief." 3. Brief facts of the case are that, the Assessee filed return of income for Assessment Year 2017-18 declaring total income at Rs. 44,29,760/-. The case of the Assessee was selected for scrutiny under CASS and an assessment order came to be passed u/s 143(3) of the Income Tax Act, 1961 ('Act' for short) b....

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.... the demonetization was out of the cash withdrawal from the bank from time to time, however, the Assessee has not proved that the said amount has not been utilized for any purpose which is start for a prudent business practice specially when the Assessee had taken the loan and was paying the interest on such loans. The Ld. Departmental Representative relying on the orders of the Lower Authorities, sought for deletion of the addition. 6. We have heard both the parties and perused the material available on record. The Assessee Company is into manufacture and sale of static energy meters which are used for measuring the consumption of electricity. During the assessment proceedings, the A.O. questioned the purpose of retaining the excessive ....

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....p; 300000 500000 989314 Jan-17 989314   0 750000 1468556 Feb-17 1468556   200000 450000 1664219 Mar-17 1664219   0 450000 2120055 7. The Lower Authorities have rejected the contention of the Assessee that the cash deposits during the demonetization are out of the cash withdrawals made by the Assessee, on the ground that human probabilities of keeping cash physically idle for long time as remote possibility and the Assessee has not proved that those cash withdrawals have not been spend for any other purpose. However, the Ld. A.O. has accepted the books of accounts of the Assessee and no defects or discrepancies of any source in the purchase and sales and stocks ....