2025 (11) TMI 1754

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....the Income-tax Act, 1961 (the Act) in respect of cash deposit during demonetization period. 03. The facts in brief are that the assessee filed the return of income on 04.11.2017, declaring total income of Rs. 9,64,510/-, which was processed u/s 143(1) of the Act. Subsequently, the case of the assessee was selected for scrutiny through Computer Assisted Scrutiny Selection (CASS) on account of abnormal increase in cash deposits during demonetization period as compared to normal period. Accordingly, the notice u/s 143(2) of the Act and other notices along with questionnaire were issued and duly served upon the assessee. The assessee complied with the said notices by filing the balance sheet, profit and loss account, ITR, etc. Thereafter, th....

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....e assessee have been audited and no adverse inference was drawn by the auditor from the books of accounts. The ld. AR submitted that even the ld. AO during the course of assessment proceedings examined the balance sheet and other documents furnished by the assessee and has not rejected the books of accounts disbelieving the operational results shown therein. The ld. AR submitted that the assessee has already included the amount of cash deposited of Rs. 69,57,500/- in the books of accounts and were shown as revenue from operation. 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 fo....

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....ere can be a double addition first by way of profit on such sales and thereafter by adding the entire amount of cash sales deposited during demonetization period by placing reliance on the decision of Co-ordinate Bench in the case of ITO vs. Joydeb Kundu in ITA No. 8/Kol/2021 for AY 2017-18 dated 16.05.2023. The Ld. A.R therefore prayed that in view of aforesaid proposition and the case laws the order of Ld. CIT(A) may be set aside and the AO may be directed to delete the addition. 06. After hearing the rival contentions and perusing the materials available on record, we find that in this case the amount stated to be deposited in the bank accounts during demonetization period was treated as business receipt by the assessee which has been....