TaxTMI 
TaxTMI 
2025 (5) TMI 1866
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....ing addition of Rs. 12,24,500/-by arbitrarily adding cash deposit made in bank account maintained with Federal Bank during demonetization period amounting to Rs. 12,24,500/- as unexplained money u/s 69A r.w.s 115BBE thereby a. Disregarding the fact that the cash deposit were out of the sums received from his customers to whom loan were given by the Appellant against their gold ornaments b. Disregarding the fact that the Appellant is not liable to maintain books of accounts and therefore section 69A is not applicable c. Arbitrarily rejecting details of cash deposits even though each and every details was submitted about the source and nature of receipt and the interest amount earned is duly shown in the return of income. 3. In the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (A) erred in confirming the same there by not considering the written submissions and several judgments cited before him. 4. In the facts and circumstances of the case and in law, the learned A.O. erred in levying interest w/s 234A, B, C and D & initiating penalty u/s 271(1)[c)." 3. The only grievance raised by the assessee, in the present appeal, is against t....
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....106 1171 5. The Assessing Officer ("AO"), vide order dated 27.12.2019 passed under section 144 of the Act, disagreed with the submissions of the assessee and held that in view of RBI Circulars, the assessee was not authorized to accept the money in the form of Specified Bank Notes after 08.11.2016, and therefore, the entire cash deposits of Rs. 12,24,500/- made during the demonetization period is the income of the assessee which was never disclosed and offered to tax by the assessee. Accordingly, the AO considered the entire cash deposits of Rs. 12,24,500/- made during the demonetization period as unexplained money under section 69A of the Act and added the same to the total income of the assessee. 6. The learned CIT(A), vide impugned order, upheld the addition made by the AO under section 69A of the Act. Being aggrieved, the assessee is in appeal before us. 7. During the hearing, the learned Authorized Representative ("learned AR") submitted that the cash deposited by the assessee in his bank account in Specified Bank Notes was received from his customers to whom the assessee had earlier granted loans in lieu of gold ornaments. By referring to the cash book and stateme....
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....rom the perusal of the list, which forms part of the paper book at page 92, we find that apart from providing the name and address of the customers, the assessee has also provided the PAN details of all these 23 customers. From the perusal of these details, we further find that these loans were given to the customers as early as 04.05.2016 and as late as 08.11.2016. We further find that, except in two cases where the loan was repaid on 30.08.2016, the rest of the 21 customers repaid the loan during the demonetization period. We find that though the assessee furnished all these documents before the lower authorities, however, none of these documents were rejected, nor despite the availability of the information regarding the customers, any verification was made by the AO from them. 10. Further, as regards the findings of the lower authorities that the assessee was not authorized to accept the repayment made by the customers in cash in Specified Bank Notes after 08.11.2016, we find that the Co-ordinate Bench of the Tribunal in TamilNadu State Marketing Corporation Ltd. vs. ACIT, reported in (2025) 170 taxmann.com 641 (Chennai - Trib.), vide order dated 07.10.2024 held that merely fo....
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....tion period in various categories of explanation offered by the assessee and as per the circular of the CBDT, examination of business cases, very important points needs to be considered is analysis of bank accounts, analysis of cash 4cs, receipts and analysis of stock registers. From the circular issued by the CBDT, it is very clear that, in a case where cash deposit found in business cases, the A needs to verify the explanation offered by the assessee with regard to realization of debtors where said debtors were outstanding in the previous year or credited during the year etc. Therefore, from the circular issued by the CBDT, it is very clear that, while making additions towards cash deposits in demonetized currency, the AO needs to analyze the business model of the assessee, its books of account and analysis of sales etc. In this case, if we go by analysis furnished by the assessee in respect of total sales, cash sales including the cash received in demonetized currency and cash deposits, there is negligible amount in demonetized currency. Therefore, we are of the considered view that when there is no significant change in cash deposits during demonetization period, then merely fo....