2025 (6) TMI 797

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.....s 115BBE a) The learned Commissioner of Income-tax (Appeals) ["CIT(A)"] erred in partially upholding the addition made by the Assessing Officer ("AO") under Section 68 r.w.s 115BBE of the Income Tax Act, 1961 without proper consideration of the facts and evidence submitted b) The authorities below failed to appreciate that the Appellant had maintained complete books of accounts, including a stock register, bills & vouchers, and GST returns, which were not rejected under Section 145(3) of the Act. c) The action of the AO in considering only 15% of yearly cash sales as reasonable for October-November 2016 is arbitrary and contrary to normal business practices. d) The AO failed to consider the pattern of sa....

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....eal. On considering the submissions of both the parties, delay of two days in filing the appeal is condoned. Now, adverting to adjudication on merit. 3. Brief facts of the case are that the assessee is a firm and engaged in Jewellery business, filed its return of income filed for A.Y. 2017-18 on 29.03.2018 declaring income of Rs. 1,19,641/-. Case was selected for scrutiny as there was survey action u/s. 133A on assessee on 23.03.2017. During assessment the assessee was asked to furnish monthly sales for F.Y. 2015-16, 2016-17 and 2017-18. On filing such detail and perusal thereof, the AO was of the view that there was total cash sales in F.Y. of Rs. 4.75 Crore, and in the month of October/November 2016r there was cash sale of Rs. 71.08 La....

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....all necessary details. During the period under consideration the assessee made cash deposit of Rs. 80.00 lakhs in his bank account. The assessee has already declared cash amount of Rs. 40 lakhs in the Pradhan Mantri Garib Kalyan Yojana (PMGKY). The assessee furnished detail and year wise break up of sales and VAT return. The AO on the basis of such details noted that there was cash sales of Rs. 1.28 Crore in October and November 2016, whereas normal sale in cash is 15%. The AO allowing benefit of 15% considered/allowed cash sales of Rs. 57,63,159/- and out of total cash sales of Rs. 1,28,06,170/-, cash sale of Rs. 70,43,011/- was treated as unaccounted. The assessee already declared Rs. 40.00 lakhs under Pradhan Mantri Garib Kalyan Yojana (....

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....AO made addition of Rs. 33,04,3011/- on applying this own formula and by allowing only 15% of cash sale and remaining amount was treated as unaccounted. The assessee furnished complete details of sales, sales register, stock register. The books results of the assessee was not disputed. The sales was not disputed. Once the assessee is already disclosed 50% of the cash deposit no addition was made on account of cash sales. In the survey action no discrepancy was found except the cash deposit, out of which the assessee has already explained to the survey team and was declared in Pradhan Mantri Garib Kalyan Yojana (PMGKY) and all remaining amount was out of regular cash sales. The assessee is showing gross profit ratio @ 5 to 20% every year. Ev....