2025 (6) TMI 903

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....erved on the assessee. Despite such service of notice on the assessee, there was no compliance from the side of the assessee. When the name of the assessee was called today, neither anybody appeared nor there was any application for adjournment. Under these circumstances, we deem it proper to dispose of this appeal based on the material available on record and after hearing the Ld. DR. 3. Facts of the case, in brief, are that the assessee is a partnership firm engaged in business of retail outlet of Bharat Petroleum Corporation Ltd. (BPCL). It filed its return of income on 30.07.2018 declaring total income of Rs. 21,45,600/-. The return was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). Subsequen....

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....n treating the entire cash deposits made during the demonetization period as unexplained money is without proper basis. However, the appellant did not submit any details evidencing the sales and details of cash collected etc. Thus, the appellant failed to discharge the onus in explaining the nature and sources of the entire cash deposits. Therefore, the entire cash deposits cannot be presumed to be received on sale of petrol. Therefore, to protect the interests of revenue, 20% of the cash deposits are hereby treated as from unexplained sources and the addition to this extent is hereby sustained. Therefore, out the addition of Rs. 1,17,92,810/- made by the AO, an addition of Rs. 23,58,562/- is sustained and the balance addition of Rs. 94,34,....

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....icer regarding the source of cash deposit of Rs. 1,17,92,810/- made by the assessee in State Bank of India during the demonetization period, the Assessing Officer, invoking the provisions of section 69A r.w.s. 115BBE of the Act, made addition of the same treating the same as unexplained money. We find the Ld. CIT(A) / NFAC directed the Assessing Officer to treat 20% of such cash deposits as out of unexplained source and deleted the balance addition, thereby giving relief of Rs. 94,34,248/- to the assessee and sustaining an amount of Rs. 23,58,562/-. We do not find any merit in the reasonings given by the Ld. CIT(A) / NFAC deleting the addition to the tune of Rs. 94,34,248/-. Merely because the assessee firm is an outlet of Bharat Petroleum ....