2025 (11) TMI 1390

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..... The issue raised in ground No.1 by the Revenue is against the deletion of addition of Rs. 3,04,06,00,00/- by the learned CIT(A) as made by the learned AO in respect of cash deposited by the assessee into bank account. 04. The facts in brief are that the assessee filed the return of income on 21.10.2022, declaring total income at Rs. 57,84,800/-. The case of the assessee was selected for CASS under complete scrutiny and the notice u/s 143(2) and 142(1) along with questionnaire were duly issued and served upon the assessee. The assessee replied the said notices on the e-assessment module of ITBA by filing submissions on 17.06.2023 and 27.10.2023 furnishing the copies of computation of income, Form 26AS, bank statement, etc. The learned AO observed on the basis of information available before him that the assessee has deposited cash of Rs. 3,04,06,000/- into his bank account during the year. The assessee replied to the notice issued u/s 142(1) of the Act that the cash was deposited out of cash sales proceeds in the normal course of business. The learned AO noted that assessee has not furnished any satisfactory reply nor gave/produced any documentary evidences to substantiate his ....

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....led for and unwarranted and hence the same be deleted. Ground No. 2:- For that in the facts and circumstances of the case the addition of Rs. 3,04,06,000/- being part of the cash sales proceeds deposited during the year under consideration as unexplained money u/s 69A of the IT Act, 1961 was uncalled for and illegal and hence the same be deleted. In these grounds the appellant has challenged the addition of Rs. 3,04,06,000/- made by the Assessing Officer u/s 69A of the Act. The Assessing Officer found that the appellant had made cash deposits amounting to Rs. 3,04,06,000/- in his bank account during the FY 2021-22. The Assessing Officer required the appellant to furnish documentary evidences with respect to nature and source of these deposits. The appellant submitted that the deposits were out of receipts of cash sale. The Assessing Officer further required the appellant to furnish evidences with respect to his claim. The appellant filed sales account and bank statements the appellant enclosed the copy of audit report trading P & L account and balance sheet. The appellant also filed details of top ten parties from whom purchases were made. However, the Assessing O....

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....al contentions and perusing the materials available on record, we find that the assessee is running the business of trading in tiles and bath fittings. We note that the assessee made detailed submissions before the learned AO which were extracted by learned CIT(A) at page number 6 to 16. In the said submissions we note that the assessee has filed the month wise statement of cash deposited during F.Y. 2021-22. Similarly, the assessee had filed the details of cash from 1^st April to 31^st March for F.Y. 2019-20 to 2022-23 and financials for all these years from F.Y. 2019-20 to F.Y. 2022-23, stating sales, cash sales, cash deposits, purchases, cost of goods sold, gross profit and net profit and thereafter, the total turnover and cash deposit ratio. The assessee also furnished the sales as per books and sales as per GST returns. We note that the assessee has comprehensively explained the cash deposited by the assessee into the bank accounts. We note that assessee has furnished all the evidences before the learned AO through ITBA e-assessment module, however, the ld. AO has failed to consider all the evidences. We note that the learned CIT(A) has recorded very clear-cut findings on thes....

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....he Act. During the assessment proceedings the appellant was required to explain the nature and source of investment of Rs. 26 Lakh in purchase of immovable property. The Assessing Officer observed that the appellant could not provide the complete and necessary documentary evidences about purchase immovable property for consideration of Rs. 26 Lakh. I find that the appellant had replied during the assessment proceedings that payments of Rs. 26 Lakh was through banking channel and the source of this amount was withdrawal from proprietary concern M/s Sanjay Agencies. The appellant submitted his passbook and the withdrawals from M/s Sanjay Agencies. During appellate proceedings the appellant was required to submit details of withdrawal for payment of Rs. 26 Lakhs for purchase of property. The appellant submitted the required details of withdrawal copy of capital account and copy of Punjab National Bank account form which payments were made. I do not find any discrepancy in the submission of the appellant and the source of Rs. 26 Lakh is explained. Therefore, the addition of Rs. 26 Lakh made by the Assessing Officer is deleted and the ground of appeal is allowed." 010. After hearing ....