TaxTMI 
TaxTMI 
2025 (5) TMI 1853
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....r, the partner of the assessee-company Sk. Rejhaul Islam filed an affidavit dated 27^th August, 2024 saying that the assessee is not aware of the order passed by the ld. CIT(Appeals) and that time he was bed-ridden with chronic sciatica pain. When the assessee came to know about the order passed by the ld. CIT(Appeals), the assessee approached the ld. A.R. to prefer an appeal, due to that there was a delay of 123 days in filing the appeal before the Tribunal. Therefore, he pleaded to condone the delay. 3. Considering the facts and circumstances of the case, I am inclined to condone the delay since the delay is not due to negligence on the part of assessee and the assessee has established sufficient cause to condone the delay. Hence the d....
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.... 8. I have heard both the sides. The only grievance of the revenue is that the source of total cash deposit of Rs. 39,48,500/- is out of Rs. 9,72,395/- kept as cash in hand and the balance amount of Rs. 29,76,105/- is out of sale proceeds received during demonetization period. Therefore, there is no ambiguity between the appellant and the revenue authorities that cash deposit of Rs. 39,48,500/- consists the sale proceeds of Rs. 29,76,105/- received during demonetization period. Hence, the main question whether the appellant has any right to receive the Specified Bank Notes during demonetization or not. It was the submission of the ld. Counsel for the assessee that the assessee is engaged in the wholesale dealer of handlooms and its total....
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....ed that even though the assessee has explained the source for cash deposits out of its cash sales, but he received the Specified Bank Notes and deposited during demonetization period. Therefore, the revenue authorities have rightly made the addition under section 69A of the Act. He pleaded to uphold the orders passed by the ld. Assessing Officers as well as the ld. CIT(Appeals). 10. I have perused the relevant material available on record and also the decisions filed by the assessee along with the paper book. It is an admitted fact that the turnover of the assessee is Rs. 10,30,53,000/-, out of which only an amount of Rs. 39,48,500/- of Specified Bank Notes was deposited by the assessee during demonetization period. It is also an admitte....
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.... the 'appointed date', no person shall knowingly or voluntarily hold, transfer or receive any Specified Bank Notes, which is punishable offence and prohibited by law. 10.1. Further according to Section 3 of the above said bill, on and from the appointed day, notwithstanding anything contained in the Reserve Bank of India Act, 1934 (2 of 1934) or any other law for the time being in force, the specified bank notes which have ceased to be legal tender, in view of the notification of the Government of India in the Ministry of Finance, number S.O. 3407(E), dated the 8^th November, 2016, issued under subsection (2) of section 26 of the Reserve Bank of India Act, 1934, shall cease to be liabilities of the Reserve Bank under section 34 and shall....
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....). As per Section 2(l)(a), "appointed day" means the 31 Day of December 2016. Section 5 of the Specified Bank Notes (Cessation of Liabilities) Act, 2017 also deals with prohibition on holding, transferring or receiving specified bank notes. Section 5 states that "On and from the appointed day, no person shall knowingly or voluntarily, hold, transfer or receive any specified bank note". We therefore, find that the specified bank notes can be measured in monetary terms since the guarantee of the Central Government and the liability of Reserve Bank of India does not cease to exist till 31.12.2016. In view of the above, the contention of the Ld. DR, treating the receipt of SB Ns from cash sales as illegal and thereby invoking the Provisions of ....