2025 (7) TMI 1561

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....Rs. 1,00,000/- in Kotak Mahindra Bank and b) Rs. 6,76,500/- in Vasai Vikas Sahakari Bank, stating that no substantial documentary evidence was produced. It is respectfully submitted that appellant has correctly explained the cash deposit as appellant is having Gas Agency and was collecting cash against the delivery of Cylinder. Cash on hand was deposited in bank as when agent collect cash deposit to office. Appellant was entitled to collect demonetization notes of Rs. 1,000/- upto 30.11.2016 and Rs. 500/- notes upto 15.12.20216. Appellant on receipt of cash from customers received by agent deposit in bank. The learned CIT(A) has stated that no bank statement was provided which was irrelevant as cash was collected on sale o....

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....cylinder to various house-holds and collected 90 to 95% of sales in cash. Therefore, cash amount is collected and deposited on various dates. All old notes were received before the mid night of 15th December, 2016. Majority of amount was deposited before 15.12.2016. In some cases wherein delivery men were absent and cash was collected by them from remote area and villages the same was subsequently deposited but before 30.12.2016 as per scheme of Government and Reserve bank of India (RBI) regulations. The reply of assessee was not accepted by assessing officer. The assessing officer noted that Government of India has directed to stop over counter exchange of old notes after 25.11.2016 but Government of India has permitted certain transaction....

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....o Date of deposit Denomination x No of piece of notes Amount (in Rs.) 1 01.12.2026 1000x2,500x280 1,42,000/- 2 02.12.2016 1000x13,500x263 3,24,500/- 3 06.12.2016 1000x85,500x263 2,16,500/-   Total   6,83,000/- The cash deposited on 06.12.2016 is wrongly calculated above as it should be Rs. 2,16,500/- instead of Rs. 3,46,000/-. The total cash deposit in Kotak Mahindra Bank from 01.12.2016 to 06.12.2016 works out to Rs. 6,83,000/-. The error resulted in excess addition of 1,29,500/-. The same is therefore deleted. Out of Rs. 6,83,000/-cash deposit in Rs. 500 (old notes) is to the tune of Rs. 5,83,000/-. Therefore, relief of Rs. 5,83,000/- is granted to the appellant. ....

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....eration total cash sales of assessee was Rs. 22.56 crore. Being LPG distributor as essential commodity, the assessee was allowed to receive payment through old currency note of Rs. 500/- and Rs. 1,000/- upto 15.12.2016. The assessee has deposited certain currency notes after 16.12.2016 as mentioned in the assessment order. Such bank notes were accepted prior to 15.12.2016 and deposited prior to 31.12.2016. Delay in deposit of demonetization currency was due to peculiar nature of assessee's business wherein delivery men collets cash from various consumers from remote areas and handed over/deposits such cash by a marginal delay ranging from 1 to 10 days. The delay in deposit was due to leave or absenteeism of delivery men or due to shortage o....