TaxTMI 
TaxTMI 
2025 (11) TMI 225
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....same on 25.03.2025. Hence, there is delay of 25 (twenty-five days). Regarding the delay, the appellant likes to state that just after receipt of the impugned order, the entire documents were handed over to the Ld. Advocate, who regularly looks after the taxation matters of the appellant but due to certain urgent pre-occupation, the said Ld. Advocate initially could not manage time but subsequently sat to discuss on the issues involved on 28.01.2025. However, as the said Ld. Advocate was compelled to take care of his one of the ailing relatives at a distant location, hence, ultimately referred the matter to the present Ld. Advocate on 26.02.2025, who then managed to sit with the appellant to discuss upon moot issues and sent requisition on 04.03.2025, whose procurement took a few time. Finally, the final draft was sent to have the confirmation over drafting and the entire set, duly signed and sealed by the appellant, which were reached the office ofthe Ld. Advocate on 20.03.2025. Hence, filed on 24.03.2025. As such, on the Tault/pre-occupation of the Ld. Advocates, the appellant should not be suffered. On the above backdrop, Your Honours' may be pleased to trea....
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....d. A.R also submitted that the assessee has maintained proper books of account which were duly produced before the AO. The Ld. A.R submitted that cash was generated during the normal course of business and was deposited into the banks during the year including the demonetization period. The Ld. A.R submitted that the AO has only stated that the assessee was not authorised to accept SBN in the normal course of business. The ld. A.R submitted that the AO has applied the provisions of Section 69A of the Act while making the addition which deals with unexplained money not recorded in the books of account maintained by the assessee for any source of income and assessee offers no explanation about the nature and source of acquisition of money, bullion, jewellery or other valuable articles or the explanation offered by the assessee is not satisfactorily then the money and value of bullion, jewellery or other valuable article may be deemed to be the income of the assessee for financial year. However, this is not the case of the assessee. The ld. A.R argued that infact the sales were duly recorded in the books of account and the profit earned during the year from the business was offered to....
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....the Hon'ble Bench has held as under: "8. We have carefully gone through the material available on record and considering the rival submission made by the parties, in the present case both the authorities below accepted the fact that the amount received by assessee are nothing but sale proceeds in the course of business of the assessee. The addition has made only on the basis that after demonetization, the demonetization note could not have been accepted as valid tender. Since the sales proceeds for which cash was received are added u/s 69A of the Act which would amount to double taxation once as sale and another against as unexplained cash credit which is violate principles of taxation. The ld. AR further contended that Hon'ble ITAT of Kolkata in the case of ITO vs M/s. Senco Alankar in ITA No. 10/Kol/2021 dated 27.06.2022 on an identical fact held as under: "7. We have heard the rival submissions and carefully considered the material placed on record and gone through various judicial precedents relied upon by both the parties. At the outset, we find that the moot point for consideration is in respect of explanation furnished by the assessee regarding nature and s....
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....ls were recorded, summons were issued to those customers, most of which remained unreplied. We note that all the sales were cash sales and in case of cash transactions of sale, delivery of goods is taken against the cash payment and it is hardly necessary for the seller to bother about the name and address of the purchaser. 7.2 We further observe that the assertion of the ld. AO on the mere possibility of assessee earning considerable amount out of cash sales on the date of announcement of demonetization is a pure conjecture on the part of the AO and is based on surmises, speculating on the approach adopted by the assessee. Rather, the estimation approach of arriving at probable sales value by the Ld. AO cannot be rationally inferred to justify the addition so made. Thus, we find that the Ld. AO indulged in suspicion, conjecture and surmises and acted without any evidence and upon a view of facts which cannot reasonably be entertained. It is a settled position of law that in making the assessment, the AO is not entitled to make a pure guess and make an assumption without reference to any evidence or any material at all. It has been consistently held by various Hon'ble Cour....