2025 (10) TMI 413

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....assessee has filed petition along with affidavit for condonation of delay stating therein the reasons for belated filing of the appeal. On perusal of the aforesaid reasons in the condonation application, we are of the view that there is sufficient cause for belated filing of this appeal. Hence, we condone the delay in filing this appeal and proceed to dispose of the appeals on merits. 3. Brief facts of the case are as under: The brief facts of the case are that the assessee is an individual and runs a jewellery shop in the name and style Mrs KSM Thangamaligai. The assessee filed his return of income for the assessment year 2017-18 on 05/02/2018 declaring a total income of Rs. 11,29,440/-. The case was selected for scrutiny and during ....

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.... a. Total cash deposit in bank fy 2016-17 9462000 b. Total cash deposit in bank from 01.04.16 to 08.11.2016 757500 c. Total cash deposit in bank from 09.11.16 to 31.12.2016 7366000 1.3. cash deposits comparison a. Percentage increase between 1.2(a) and 1.1(a) 50.27% b. Percentage increase between 1.2(b) and 1.1(b) 76-38% c. Percentage increase between 1.2(c) and 1.1(c) 560.63% 2. Cash sales: 2.1 Cash sales in FY 2015-16 a. Total cash sales in FY 2015-16 3073150 b. Total cash sales from 01.04.15 to 08.11.2015 2475274 2.2 Cash sales in FY 2016-17 a. Total cash sales in fy 2016-17 6388784 b. Total cash sales from 01.04.16 to ....

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.... June 2080934 458760 150000 229000 3000 179212 2736482 July 2736482 547114 0 116250 0 285126 3114720 Aug 3114720 376885 0 218250 0 193657 3516198 Sept 3516198 363825 400000 220500 650000 2689796 3610727 Oct 3610727 2935728 500000 14250 104500 867662 6188543 Nov till 08.11.16 6188543 632690 700000 4500 0 126234 7399499 6. The assessee stated that he has not maintained regular books of accounts and his income is computed under provisions of section 44AD of Income Tax Act, 1961. The ld. Counsel further submitted that assessee is running his small business alongwith his family members. Most of the custo....

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....11): 76.38% c. Percentage increase during the post-demonetisation window (09.11 to 31.12): 560.63% 2. Cash Sales 2.1. Cash Sales During FY 2015-16 a. Total cash sales for the financial year amounted to Rs. 30,73,150. b. Sales from 01.04.2015 to 08.11.2015 stood at Rs. 24,75,274. 2.2. Cash Sales During FY 2016-17 a. Total cash sales during the financial year amounted to Rs. 63,88,784. b. Cash sales from 01.04.2016 to 08.11.2016 totalled Rs. 57,46,996. 2.3. Comparative Analysis of Cash Sales a. Increase in total annual sales: 107.89% b. Increase during the period 01.04 to 08.11: 131.88% 3. Month-wise Analysis of Cash Sales and Cash Depo....

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....s presumptive taxation, the assessee is not mandatorily required to maintain regular books of accounts. The cash flow statements submitted by the assessee, including the month-wise analysis of cash sales and deposits, demonstrate a consistent and plausible cash trail. The data indicates that the cash deposits made during the relevant periods are supported by corresponding cash sales and withdrawals, and there is no apparent mismatch or unexplained cash inflow. Further, the significant increase in cash sales and cash deposits during FY 2016-17, particularly in the months preceding and following the demonetisation announcement, is adequately explained by the assessee. The nature of the assessee's business i.e. trading in jewellery in a rural ....