2025 (11) TMI 801

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.... appeal: 1. On the facts and in the circumstances of the case, the Ld. CIT (A) erred in upholding the addition of Rs. 24,58,614/- under section 68 r.w.s. 115BBE of the Act. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) failed to appreciate that the sales of liquor made during the demonetisation were duly accounted in the books of the Appellant and the same were offered for tax. 3. The Ld. CIT(A) failed to consider the various case laws of the Hon'ble Apox Court as well as the decisions of this Hon'ble Tribunal cited by the Appellant in his written submissions. 4. The Ld. CIT(A) erred in upholding the levy of interest under sec. 234B of the Act. 5. The Ld. CIT(A) err....

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....f section 68 of the Act and tax is charged at the rate of 60% in view of section 115BE of the Act. Thus, the AO completed the assessment proceeding u/s. 143(3) of the Act on a total assessed income of Rs. 52,06,690/-. 4. Aggrieved by the order of the AO dated 17.12.2019, the assessee preferred an appeal before the ld.CIT(A)/NFAC. 5. The ld.CIT(A)/NFAC partly allowed the appeal of the assessee by holding that the assessee has proved through the daily cash summary that he had cash in hand of Rs. 8,00,286/-. Similarly ld.CIT(A)/NFAC also observed that the assessee has deposited Rs. 3,72,100/- on 08.11.2016 which was prior to the announcement of demonetization, & that cannot be counted as SBNs. Lastly, the ld.CIT(A)/NFAC held that if the ....

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....ts of the business of the assessee are audited by the chartered accountant. On going through the Audited profit & loss a/c, we noted that the assessee has declared total wine sales of Rs. 3,68,26,673/- during the FY 2016-17 relevant for AY 2017-18 which is not in dispute. During the period between 08.11.2016 to 31.12.2016, the assessee had made total cash deposits to the extent of Rs. 55,08,100/- out of which Rs. 36,31,000/- pertains to SBN notes. The assessee claimed that the source of entire cash deposits were out of the closing cash balances as on 08/11/2016 as well as cash sales of liquors made during the demonetization period. The assessee also claims that the entire sales had already been accounted by the assessee in his books of acco....

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....re, in our opinion both the Authorities below accepted the cash sales as sources of deposit cash into current account of the assessee. We could not understand if the cash deposited in SBNs after demonetization were just worthless pieces of paper having zero value, then for making additions as income how that became worth pieces of paper having value of Rs. 36,31,000/-. 9.2 We observed that the authorities below had not disputed the cash sale proceeds declared by the assessee in his audited profit and loss account. We could not understand merely because the assessee had accepted SBNs after demonetization, why these cash sales receipts cannot be treated as part of sales declared by the assessee especially when the said cash were deposited ....