TaxTMI 
TaxTMI 
2026 (1) TMI 541
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.... "Abnormal increase in cash deposits during demonetization as compared to pre-demonetization period." Notice u/s 142(1) was issued. Assessee submitted details online. Notice u/s 143(2) was issued and received on 13.08.2018. On completion of proceedings, the Ld. AO vide order dated 27.11.2019, made addition of Rs. 48,00,000/-. 3. Against order dated 27.11.2019 of Ld. AO the assessee filed appeal before the Ld. CIT(A) which was dismissed vide order dated 24.10.2024. 4. Being aggrieved, the appellant/assessee filed present appeal with the following grounds of appeal:- "1. That the learned CIT(A) has erred both on facts and in law in sustaining the addition made by the learned AO of Rs. 48,00,000/- to the returned income, which even included cash in hand as on 08.11.2016. 2. That the learned CIT(A) in his order in para 5 has abruptly concluded that 'from the details available in the invoices, the identity and genuineness of the buyers could not be verified'. The aforesaid finding is not only erroneous but is wholly arbitrary. In fact, had any enquiry been made the customers could have been identified, 3. That the learned CIT(A) has failed to appreci....
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....livered the stocks within short time is wholly erroneous." 5. The ld. Authorised Representative for the appellant-assessee submitted that the ld.CIT(A) failed to appreciate that the ld. AO framed assessment order at an income of Rs. 59,13,765/- against the returned income of Rs. 11,13,765/-. An average addition of Rs. 48 lakhs was made. The assessee's submission of cash sale to 93 customers was held to be not justified. The assessee is engaged in the business of trading in iron and steel including GP/GC sheets, both on wholesale and retail basis. The complete books of account, statutorily required, including cash book, ledger, stock register on day-to-day basis is being maintained. The assessee is assessed to income-tax for the last ten Years. Copy of cash credit account statement of Yes Bank of assessee for the year under consideration is placed at pages 64-68 of the paper book; copy of cash book for the period 09.11.2016 to 31.12.2016, i.e., for demonetization period is placed at pages 69 to 75 of the paper book; copy of ledger account of major suppliers of the assessee is placed at pages 76 to 81 of the paper book; and copies of sales invoice, i.e., from invoice number 0612 t....
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....se Holidays e) ITA No. 999/2010 dated 03.08.2010 CIT vs. M/s Rice India Exports Pvt. Ltd. f) ITA No. 165/2010 dated 04.05.2017 CIT vs. M/s Pashupati Nath Agro Food Products (P) Ltd 5.3 Once cash sales to the tune of Rs. 78,58,256/- have already been offered as income, in the total sales of the year amounting to Rs 49,79,97,649/-, then money available as a result of such cash sales which have been deposited in the bank cannot be taxed as income under section 68/69A of the Act as that would tantamount to double taxation. Double taxation is not permissible in law. Reliance is placed on the following judgments: i) 72 ITR 291 (SC) CIT v. LaxmiPat Singhania vs. CIT ii) 118 ITR 50 (SC) State of Uttar Pradesh vs. Raja Buland Sugar Co.Ltd. iii) CIT vs. Vishal Exports Overseas Limited (Guj) in Tax Appeal No. 2471 of 2019 iv) CIT vs. Kailash Jewellery House (Del) in ITA 613/2010 5.4 Section 68/69A of the Act does not apply to a sum already disclosed as income as held by the judgment of Hon'ble Hon'ble Delhi High Court in the case of DIT vs. Keshav Social & Charitable Foundation in 278 ITR 152 (Del). 5.5 Sales and purchases made pr....
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....standard weight. In such circumstances it is submitted that, the finding of the AO, that it was not possible to weigh such sold stocks on a single day, is based on mere assumptions and presumptions, overlooking the fact that the assessee had sold sheets which are duly recorded in the stock register. In fact, closing stock had been carried over in the next year and had also been accepted in the succeeding year. In such circumstances, the finding of the AO, that such stocks remained unsold and credits appearing in books of account are not well explained, is not only erroneous but overlooks the facts on record. It is well settled rule of law, that suspicion howsoever strong it may be, cannot partake character of an information/evidence/material. 5.9 On the facts of the case section 115BBE of the Act is not applicable, as for application of section 115BBE of the Act, the primary condition is that the assessee should first fall in any of the sections, i.e. section 68 and from sections 69 to 69D of the Act. The appellant has given complete explanation regarding the source of cash deposited is out of sale of trading goods and thus, out of assessee's own cash book and the same has been ....