TaxTMI 
TaxTMI 
2026 (1) TMI 550
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....he mandatory conditions u/s 143 as envisaged under the Income Tax Act, 1961. 3. That having regard to the facts and circumstances of the case, Hon'ble CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making an addition of Rs. 2,75,57,700/- u/s 69A of the Act and taxing the same u/s 115BBE, on account of cash deposited in bank account considering as unexplained money, without considering the facts of the case and without observing the principles of natural justice. 4. That having regard to the facts and circumstances of the case. Hon'ble CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making an addition u/s 69A of the Act and charging tax as per section 115BBE of the Act, without considering the facts of the case. 5. That the appellant craves the leave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds are without prejudice to each other." 3. Brief facts emerging from records are that the assessee is engaged in the business of trading of gold ornaments and jewelleries under the trade name of "Mahavir Abhushans ". Regular return filed d....
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....stock was received, how the purchases were made on credit and why the sales were predominantly in cash that too just before demonetization. The accounts were prepared subsequently and VAT returns were also filed on the basis of the accounts. But, they are away from reality and the transactions in question have not been explained satisfactorily. Thus, the AO has rightly rejected u/s. 145(3) of the Act the books of accounts as the accounts were found to be fabricated. The AO has been very fair and just in allowing cash deposit as explained to the tune of Rs. 1,34,36,800/- and has brought to tax only the balance amount which was unexplained and beyond the normal probability of business of Rs. 2,75,57,700/- as unexplained money u/s. 69A of the Act. The said addition is also upheld. AO has also rightly invoked the provisions of section 115BBE of the Act as the addition has been made u/s. 69A of the Act. Ground no. 3 to 6 are dismissed. 9. In the result, for statistical purposes the appeal is dismissed." 5.1 Now, the assessee is before the tribunal on the ground contained in the memorandum of appeal. 6. In course of hearing before the tribunal, the assessee has filed a pap....
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....he contrary to disprove the said purchase, the payments of which has all been made through bank channel duly reflected in bank statements. 6.5 He further drew our attention to page nos. 93 to 101 of the paper book to submit that the sales affected by the assessee to various parties are supported by date wise details of bill number and in some cases as verified by the AO is also confirmed by the parties 6.6 Thereafter the ld. AR of the assessee took us to page nos. 29 to 31 of the paper book where details of cash sales are contained relating to October and November 2016, and pointed out that there is no reason to doubt the said sales because on respective dates sufficient quantity of stock was available for trading, and when stock is available and duly recorded in stock register (which is accepted) there is no reason to dispute the sales. 6.7 The ld. AR further submitted that increase in sales for a particular period in comparison to immediately earlier period does not lead to an automatic conclusion that the sales executed were not genuine when the same are substantiated by documentary evidences placed on record by way of sales bills and confirmed particulars from various ....
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.... of deposit are explained applicability of provisions of section 69A does not arise. 9. Regarding the issue of human probabilities as pointed out by the ld. CIT(A), the ld. AR of the assessee submitted that the question of human probabilities arises out of surrounding circumstances and facts of the case and in the present situation, the assessee is engaged in the business of trading of jewellery and gold ornaments and has no other source of income. 9.1 In support of his contention, he also submitted before the bench, copies of assessment order in the assessee own case for the assessment year 2018-19 (i.e. immediately following assessment year), where assessment has been completed u/s 147/144B of the Act dated 2nd March, 2024 and as per the copy filed before us, the issue of unexplained credit in bank account to the tune of Rs. 68.63 crores were taken up for reassessment u/s 148 and after verification and examination of all documentary evidences such as sales register, cash book, bank statement and all incidental document of purchase and stock, gross receipt from sales has been accepted at Rs. 74.09 crores and assessment has been completed on the returned income of Rs. 6,21,00....
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....om the genuine sales which are flowing out of explained source and as such, he prayed that the addition made by the AO and sustained by the ld. first appellate authority may please be deleted. 15) The Ld DR relied on the order of the Ld CIT (A) and submitted that as rightly pointed out by the first appellate authority, it is not properly explained how that much quantity of gold stock was arranged by the assessee on credit to be sold to customers within a short period of one month and eight days, the sale proceeds of which has been deposited in bank and the same does not appear to be practical and real on preponderance of probabilities. However, he has not found out any specific error in the paper book submitted neither in the availability of stock nor on purchase A/c considering that all purchase are routed through bank channel. 16). We have heard the rival submission and considered all materials on record and the contents of the paper book and we are of the opinion that accounts regularly maintained in regular course of business have to be taken as correct unless there are sufficient reasons to indicate that they are unreliable, incorrect or incomplete. There is no evidence ....