2025 (5) TMI 887

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....assed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 30.12.2019 by the Assessing Officer, ITO, Ward-11(2), Delhi (hereinafter referred to as 'ld. AO'). 2. Though the assessee has raised several grounds before us, we find that the only effective issue to be decided in this appeal is as to whether the Learned CITA was justified in confirming the addition made on account of cash deposits during the demonetization period in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the materials available on record. The Assessee Company is engaged in the business of retail trading of home décor products including furniture, sculptures, lights etc. The ret....

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....ved the entire contentions and observed that similar cash deposits were not made by the assessee in the earlier year. The assessee to buttress this argument submitted that the business itself was started only in October 2016 and hence the same is not comparable with that of the earlier year. The assessee specifically stated that the retail showroom in Delhi started in October 2016. This showroom was taken on rent from Mrs. Rajini Apan from July 2016, post which showroom fit outs took 3 to 4 months and the assessee being a new showroom, lot of retail sales took place during the months of October to 8th November 2016. The assessee also submitted the complete copies of sale bills, cash book, VAT returns (both original and revised) and purchase....

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....eacute;cor items had been duly reduced. The assessee had furnished the sale invoices, purchase invoices, stock registers, VAT returns (both original and revised) cash book, entire books of accounts before the learned AO. None of these documents and records were even rejected by the learned AO. The assessee had filed revised VAT returns for the third quarter only to change the input tax credit figure thereon. The sales figure in original VAT returns and revised VAT returns remain unchanged. The sales made by the assessee had not been doubted by the revenue. Hence the revenue having accepted the sales made by the assessee, ought not to have made separate addition on account of cash deposits by treating it as unexplained. Otherwise, the same w....