TaxTMI 
TaxTMI 
2025 (12) TMI 976
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....sessee in Form No. 36 are as follows: "1. The assessee is depositing only that amount which was received from cash sales out of business only. The complete cash book and details of cash deposit in bank is filed by assessee with the Ld. Assessing officer and all required information asked by Ld. Assessing Officer is duly submitted. Therefore, the additions are made only on the basis of assumptions and surmises and is not as per law. There is no express provision in the law giving an assumption to declare deposit of old demonetization currency as unexplained income. Therefore, no addition is justified as per section 69A of the Income Tax Act 1961." 3. Brief facts in this case is that the assessee is engaged in the business of reta....
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....s 69A of the Act, 61 and taxed as per rates u/s 115BBE. 5. The matter carried in appeal has been dismissed by the ld. first appellate authority, by observing as follows: "I have gone through the detail assessment order passed by Assessing officer (AO) and details of submission given by appellant. All grounds points to single issue, therefore considered together. The fact of the case is appellant had deposited SBN (Specified bank notes) Rs. 1,000/- denomination notes in the Bank after 25-11-2016, when the petrol pump dealers were debarred from accepting them, AO after considering the facts submitted by appellant added Rs. 3,66,000/- on account of unexplained money. Appellant had engaged in petrol pump b....
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....ol and diesel and lubricants and since the said sale has already been considered as part of the total turnover disclosed in trading A/c, no further addition should be made and the addition sustained by the ld. CIT(A) may please be deleted more so considering the fact that the regular books of accounts has not been rejected, and no discrepancy in sales or purchase or stock has been noted and there is no adverse finding in respect of actual sales disclosed. 7. The ld. DR relied on the order of the ld. CIT(A) and has also relied on the cash book filed by the assessee in his paper book and has submitted that the acceptance of 1000 rupee notes was allowed by the Central Government in respect of petrol pumps till 25th Nov., 2016 and beyond tha....
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.... of petroleum products ( MS/ HSD ) on 30th November and 1st December, 2016, and has deposited the same in his bank which was in violation of the said notification, resulting in an addition of Rs. 3,66,000/- u/s 69A of the Act 61, and sustained by the Ld first appellate authority. 9. We also find that the assessee has maintained regular books of accounts, and the cash book has been examined during scrutiny and no adverse inference has been drawn regarding the entries of sales and purchase recorded therein and there is no dispute regarding the matter of in flow and outflow of quantitative stock of MS / HSD and closing stock held by the assessee and all purchases through bank channel and sales made to customers has been accepted. 10. We ....
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....the sales of Rs. 3,66,000/- has not been reduced from the disclosed gross turnover), and it is only the acceptance of the old currency ( SBN ) notes that is disputed, which resultantly follows that sustaining an addition of Rs. 3,66,000/- will result in double addition, simply because the said sale is already included in the gross sales disclosed in the trading A/c. 14. As such on the totality of the facts and circumstances of the case we arrive at a conclusion that the nature and source of cash deposit arising out of a genuine business sales is established and the same is proven and recorded in books of accounts and as such the provisions of section 69A in the instant case is not attracted because it is a violation of an RBI or Governme....