AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 794
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....the Act and other notices along with questionnaire were duly issued and served upon the assessee. The assessee is engaged in the business of manufacturing of poultry feed and running of poultry farming, etc. During the course of assessment proceedings, the ld. AO called for the details and evidences from the assessee which were duly filed. The ld. AO noted that during the demonetization period assessee has deposited cash of Rs.1,42,72,500/- and compared the said transactions with the cash deposited by the assessee in the preceding year also which are extracted below: - 05. The ld. AO on comparison of cash deposits during the year vis-à-vis previous year that the cash deposited by the assessee has decreased by 43.41% during demonetization period as compared to the said period during the previous year 2015-16, whereas turnover has increased 34.80% with profit increased by 99.75% in comparison to previous financial year. The ld. AO also compared that sales in October 2016 were Rs.8,12,35,328/-, which fell to Rs.6,07,29,850/- during such time when market demand of product was generally high. The ld. AO further noted that this has resulted into artificial negative growth for t....
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....nditions were not satisfied. Accordingly, we hold that the books were wrongly rejected by the Learned AO. Ground No. 2 is allowed. 08. The issue raised in ground No. 3 is against the order of Learned CIT (A) upholding the action of the Learned AO in making the addition of Rs.1,42,75,500 as unexplained cash credit by invoking provisions of Section 68 read with Section 115BBE of the Act. 09. The facts in brief are that the assessee has deposited this cash as discussed above out of the sale proceeds in the regular course of business and shown the same in the books of accounts. We note that even the books of accounts of the assessee were audited by the Chartered Accountant and no adverse inference was drawn. We note that the SBN were duly recorded by the auditor in Note 25 appended to final accounts titled as Details of Specified Bank Notes held and transaction during 9-11-2016 to 30-12-2016. Therefore, the addition made by the AO has resulted in double addition and also double taxation as the same income was taxed twice. Once the assessee has shown as sales from the business and secondly, the addition under Section 68 which is wrong and against the provisions of the Act. The cas....
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....ations carry AO's own figment of imagination. We note that the assessee has countered all the assertions and assumptions made by the AO by submitting the details from its audited books of accounts and stock registers by providing all the relevant details from time to time. We note that the assessee had given all the explanations which are reasonable and there is no other material except for the estimation of probable sales value done by the Ld. AO for the purpose of treating the deemed income as unexplained money in the hands of the assessee. We also note that assessee has duly recorded in its books of accounts all the sales made on the date of announcement of demonetization in the time window available on that day which has been credited in the P&L Account. It is also noted that the assessee had stock in hand to meet the sales demand, all of which is duly recorded in the stock register furnished before the authorities below. It is also noted that there is no specific discrepancy pointed out in respect of the books of account, more particularly when the purchases have not been doubted in the assessment. Ld. AO has noted that details of customers on the invoices raised during the ti....
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....ting judicially and properly instructed as to the relevant law could have found, or the finding was, in other words, perverse and this court is entitled to interfere." 7.3 Ld. Counsel pointed out that assessee had all the capabilities, infrastructure, manpower, process and procedures to handle and deal with high volume of customers during small time window available to it. For comparability of the circumstances which existed on the day of demonetization announcement, he pointed to the occasion of Dhanteras which is a festival wherein similar kind of high traffic volume of customers happens for the purchase and sale of gold/bullion/jewellery, it being an auspicious day for making such investments. It was placed on record that on the day of Dhanteras which fell on 28.10.2016 i.e. prior to the day of announcement of demonetization, sales bills to the tune of 229 numbers were generated while dealing with those many customers which was also during the smaller time window available on that day depending on the muhurats. It was also pointed out that the VAT returns filed by the assessee for the year under consideration have not been revised in any manner so as to reflect any kind....