2025 (12) TMI 20

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....ssessee has raised the following grounds of appeal: "1. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A), NFAC has erred in confirming the action of assessing officer in making addition of Rs. 57,85,000/- as unexplained cash credit u/s 68 of the I.T. Act, 1961. 2. On the facts and circumstances of the case as well as law on the subject, the learned CIT(A), NFAC has erred in confirming the action of assessing officer in invoking provisions of section 115BBE of the Act and in thereby taxing entire unexplained cash credits at 60 percentage and levying surcharge at 25 percentage which is not applicable on above amount. 3. It is therefore prayed that above addition confirmed ....

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....ion, and since the assessee failed to give proper evidence about from where the cash came from, the entire deposit amount was treated as unexplained income under Section 68 of the Act. The Assessing Officer added a sum of Rs. 57,85,000/- as unexplained income to the total income of the assessee and taxed the same at 60% under Section 115BBE of the Act. 4. In appeal, CIT(Appeals) noted that the assessee had deposited Rs. 57.85 lakhs in cash during the demonetization period. To check if these deposits were genuine, the AO had asked for supporting documents. The assessee submitted that the cash came from his regular business sales and even mentioned a new business deal with Paragon Polymers which led to more cash sales. The assessee submitt....

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....ted the explanation on the grounds that full confirmations were not filed, there was a sudden increase in sales in October 2016, and certain documents such as stock registers and GST returns were not furnished. The CIT(A) concurred with the AO, holding that the assessee failed to establish the genuineness of the deposits. Having considered the material on record and the submissions of the assessee, it is evident that the cash deposits during the relevant period were duly accounted for in the books of account by the assessee and arose out of sales (which had been duly recorded) and receipts from debtors. The assessee has filed audited financials, offered the entire turnover to tax, and no discrepancies have been pointed out in the financial ....