TaxTMI 
TaxTMI 
2025 (7) TMI 890
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....the Assessee submitted that, there is a delay of 11 days in filing the appeal before the Tribunal. The assessee has filed an affidavit seeking for condonation of delay in filing the appeal by explaining the reasons. He submitted that, his business premises was situated at Jadcherla. After NFAC has dismissed it's appeal, he approached his CA Isireddy Krishna Reddy at Jadcherla for filing of appeal before the Tribunal. Since, he does not have prior experience in filing appeal before the Tribunal, his Counsel consulted few of his professional peers and after taking advice, the instant appeal has been filed before the Tribunal on 06.06.2024 with a delay of 11 days. He, therefore, submitted that, the impugned delay of 11 days in filing the appea....
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.... in filing the appeal before the Tribunal and admit the appeal for adjudication. 5. Brief facts of the case are that, the assessee is an individual and filed return of income for the assessment year 2017-2018 on 03.11.2017 declaring total income of Rs. 10,90,820/-. The assessment has been subsequently reopened u/sec.147 of the of the Income Tax Act, 1961 [in short "the Act"] for the reasons recorded, as per which, during the course of assessment proceedings in the case of M/s. Sri Laxmi Bhavani Traders [Firm] for the assessment year 2017-2018, it was submitted by the assessee viz., Smt. Jettem Amba Bhavani that, the Firm M/s. Sri Laxmi Bhavani Traders having PAN ACQFS7227M has not yet commenced it's business activities, but, this PAN was....
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.... net profit of Rs. 13,00,818/-. However, no details as to how the said cash generated supported by bills and invoices. Therefore, the Assessing Officer issued one more show cause notice -cum- draft assessment order dated 11.03.2022 and called-upon the assessee to furnish relevant details, including details of cash sales and cash deposit into bank a/c along with bills and vouchers etc., In response, the assessee has failed to file relevant details as called for by the Assessing Officer including comparative sales, cash sales and cash deposit into bank a/c for the 2 financial years. Therefore, the Assessing Officer by taking note of relevant cash deposits into bank a/c during the demonetization period, made addition of Rs. 60,42,500/- u/sec.6....
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....c., but, could not file any evidences as to how cash deposit was generated from his business by filing relevant bills and invoices, cash book, bank a/c details of SBN deposited etc. Therefore, the learned CIT(A) sustained the addition made by the Assessing Officer towards cash deposit into bank a/c. u/sec.69A of the Income Tax Act, 1961. 7. Aggrieved by the order of the learned CIT(A), the assessee is now, in appeal before the Tribunal. 8. Shri T. Chaitanya Kumar, Advocate-Learned Counsel for the Assessee submitted that, the learned CIT(A) has erred in sustaining the addition made by the Assessing Officer towards cash deposit of Rs. 60,42,500/- u/sec.69A of the Income Tax Act, 1961, without appreciating the fact that, said cash deposi....
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....e towards cash deposit into bank a/c during the demonetization period and, therefore, the order of the learned CIT(A) should be upheld. 10. We have heard both the parties, perused the material on record and the orders of the authorities below. The Assessing Officer made addition towards cash deposit of Rs. 60,42,500/- during the demonetization period into bank a/c on the ground that, the assessee could not explain the source for said cash deposit. The only reason given by the Assessing Officer to make the addition is cash deposits during the demonetization period. In other words, there is no finding from the Assessing Officer about the nature of cash deposit whether it is in SBNs or regular currency. Further, going by the observation of ....
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....ank a/c during the demonetization period when compared to previous financial year, which is evident from the facts gathered by the learned CIT(A) that, the assessee has made cash deposit of Rs. 58,09,000/- in the month of November, 2016, whereas, the corresponding cash deposit for the month of November, 2015 was at Rs. 78,69,688/-. Since there is no abnormal deviation in cash sales or cash deposit during the demonetization period when compared to earlier financial year during the same period, in our considered view, merely for the reason of cash deposit into bank a/c during the demonetization period, the explanation offered by the assessee with regard to source for said cash deposit cannot be discarded. This legal principle is supported by ....