TaxTMI 
TaxTMI 
2025 (9) TMI 1561
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....y the assessee and thus the ld. CIT(A) dismissed the appeal of the assessee holding therein that the assessee did not file any details pertaining to his customers, no supporting documents relating to sale and purchase and not filed ledger balances of his customers to prove that any money was receiveable from debtors which was realized during demonization. The narration as made by the ld. CIT(A) in his order is reproduced as under :- "6. FINDINGS & DECISION I have gone through the assessment order and grounds of appeal. The Ld. AO has carried out addition on account of unexplained cash deposited during demonetization. Aggrieved by the assessment order the appellant has filed multiple ground of appeal which are collectively adjudicated as under. Ground 1 6.1 During demonetization period the appellant had deposited Rs. 72,10,000/- bank account and in order to test the genuineness of the deposits and source thereto the learned AO called for relevant details. 6.2 At the outset the appellant contested that the major source of revenue for the his business of current sale of and realization of past debtors. Appellant also contested that he is pr....
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....13,471,887 1,341,097 14,812,984 July 3,501,341 - 3,501,341 7,259,181 684,290 7,943,471 August 4,575,639 - 4,575,639 5,610,532 195,553 5,806,085 September 946,460 - 946,460 741,123 23,851 764,974 October 4,092,950 - 4,092,950 5,366,643 283,250 5,649,893 November 9,033,582 - 9,033,582 9,229,672 521,539 9,751,211 December 9,775,446 - 9,775,446 8,434,812 178,034 8,612,846 January 6,989,284 - 6,989,284 4,688,979 147,838 4,836,817 February 2,663,136 - 2,663,136 3,325,891 16,986 3,342,877 March 91,182 - 91,182 1,138,479 38,152 1,176,631 Grand Total 67,625,287 - 67,625,287 70,826,598 4,315,213 75,141,811 The appellant did not file any details pertaining to his other business viz Rahul Marketing. The appellant did not file any details pertaining to his customers, neither the appellant filed any supporting in relation to sale and purchase claimed by him. The appellant also did not file ledger ....
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....s since several years. 3. The assessee during the relevant previous year having Turnover of Rs. 7,51,41,810/- against that of Rs. 5,04,95,532/- in preceding year, got his books of accounts audited u/s 44AB of IT Act 1961 and filed return of Income declaring Net Profit of Rs. 1510604/- against that of Rs. 1173640/- in preceding year. 4. The assessee separately declared Net Profit of Rs. 1572276/- from C&F Business. 5. The AO having information that the assessee has made certain Cash Deposits in his Bank Account, vide Notice dated 29.09.2018 initiated the Assessment proceedings u/s 143(2) of IT Act 1961. 6. The assessee vide letter dated 21.10.2019 (PB No.1-6) filed requisite details and documents before the AO during the course of assessment proceedings. 7. The AO observed that the Assessee during the relevant previous year has made Total Cash Deposits of Rs. of Rs. 5,32,42,600/- out of which Rs. 72,10,000/-pertains to the period of demonetization Le. 09.11.2016 to 31.12.2016. 8. The assessee explained that the source of Cash deposit was Cash Sales and collection form Debtors. 9. The AO doubting the Cash Sales/collection....
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.... Sales and collection from Debtors during 09.11.2016 to 31.12.2016 4538427/- Total 8403868/- 7. The assessee was also having opening cash in hand of Rs. 1116488/- on the date of demonetization. 8. The assessee has made Cash Deposits in to the Bank during regular course of his Business and there is no exceptional Cash Deposit during the period of demonetization as compared to preceding Year: Particulars Relevant A.Y. 2017-18 Preceding A.Y. 2016-17 Total Sales as per Profit and Loss Account 75141810/- 50495532- Total Cash Deposited in to the Bank (As recorded on Page No.3 of the Assessment Order) 53242600- 38777200/- % to Total sales 70.86% 76.79% Total Cash Deposited before Demonetization i.e .01.04.2016 to 08.11.2016/Corresponding period of Demonetization 38392900/- 21669400/- % to Total sales 51.09% 42.91% Total Cash Deposited during the period of Demonetization 7210000/- 10259200/- % to Total sales 9.609% 20.32% Total Cash Deposit after Demonetization 01.01.2017 to 31.03.2017 7639700/- 6848600/- % to Total sales 10.17% 13.56% 8. The assessee also sub....
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.... "9.8 Respectfully following the consistent view and after considering the factual matrix of the cash on hand in our considered view the addition made cannot sustain and therefore, we vacate the addition of Rs. 80,00,000/- made under section 68 of the Act as the same cannot be made without rejecting the books of account of the assessee regularly maintained by the assessee and the said cash deposited is duly supported by the entries passed in the books of account and part of the sale accepted by the AO." 19. Therefore Your Honour is requested to delete the relevant addition of Rs. 7210000/- and restore the returned Income." With a view to settling the dispute in question, the ld. AR of the assessee has filed the following documents/ papers S. No. Paper/document Page No. 1. Letter submitted on 21.10.2019 before the AO during the course of Assessment proceedings. 1-6 2. Written Submission dated 14.10.2021 before ld. CIT(A) 7-19 3. Monthly Cash Sale and Deposit Details for the relevant F.Y.6- 17 and preceding F.Y.2015-16. 20-21 4. Cash Book for the period 01.10.2016 to 31.03.2017 22-42 5. Return of Income along with C....