TaxTMI 
TaxTMI 
2026 (1) TMI 1035
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....ct, 1961 ('the Act' in short) for Assessment Year 2017-18. 2. The assessee has raised 8 grounds of appeal. However, during the course of hearing, the assessee pressed only Ground No. 7, which reads as under:: "7. The learned CIT(Appeals) erred in confirming the addition of Rs. 22,00,000/-." Thus, the only issue for adjudication before us is the confirmation of addition of Rs. 22,00,000/- made u/s 68 of the Act. 3. The brief facts of the case are that the assessee is engaged in the business of dealing in Gold and Silver Ornaments on retail basis in the name of 'Sonika Jewellers'. The assessee filed his return of income for the year under consideration on 16.10.2017, declaring a total income of Rs. 13,48,890/-. The case was ....
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....iod which calculated at Rs. 22,00,000/-(1,10,00,000/- x 20%) is added to total income of the assessee as unexplained cash credit u/s. 68 of the Act. Penalty proceeding u/s. 271AAC(1) is initiated for income deemed u/s. 68 of the I.T. Act..." 5. Aggrieved against the Assessment Order, the assessee filed an appeal before the Ld. CIT(A), who confirmed the addition by observing as under: 6.3 I have considered the facts on record and the submission by the appellant along with the material furnished in the paper book. I find that in this case there was a sudden spurt in activity of gold sale by the appellant as soon as the demonetization was announced from 8th November, 2016 by the Prime Minister. The AO has brought forth that during ....
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....tization whose primary purpose was to flush out black money in the economy. The modus operandi of the appellant was the usual operation which was undertaken during demonetization period by jewellers. They exchanged black money in lieu of gold which was shown as sold by creating bills of sale for a period just before demonetization and the said cash was deposited in the bank accounts of the jeweller claiming the same to be cash in hand as on 08.11.2016. 6.3.1 The entire argument given by the appellant before the AO that the rate of gold nominally increased compared to previous FY leading to spurt in purchases in FY 2016-17 are not borne by facts. If that was the case then in why multiple of months cash deposits were such small amoun....
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....find that the issue was already taken care of by the Administrative PCIT who passed an order u/s 263 and reverted the matter back to the file of the AO for examination. As per the appellant no appeal was filed against this order by the administrative PCIT. The AO in his order u/s 143(3) rws 263 dated 22.03.2023 has added back the balance Rs. 88,00,000/- in the hands of appellant. The appeal against the said order is pending in this charge and shall be taken up in appropriate course of time. Hence, remedial measure has already been undertaken. 6.3.2 In view of the above discussion, as the nature and source of the deposits of Rs. 22,00,000/- which were added by the AO in the order u/s 143(3) which is in current appeal, were not satis....
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....00,000/- 2,50,000/- October 5,00,000/- 11,00,000/- November 01.11 to 08.11 - - November 09.11 to 30.11 10,00,000/- 1,10,00,000/- December 45,50,000/- - January 20,00,000/- 75,000/- February 2,00,000/- - March 1,00,000/- - And, the month-wise sales and purchase details for FY 2016-17 and 2015- 16 are as under:- Month FY 2016-17 FY 2015-16 purchase Sales purchase sales Credit Cash Credit Cash Credit Cash Credit Cash April - 218823 - 182957 2993790 May 104076 - 168189 3917191 1000000 28867....
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.... 812773 October 812773 1663725 500000 - 1770000 November 08.11.2015 1770000 1182364 - - 2850483 9.11.15 to 30.11.2015 2850483 2211216 1000000 - 4018006 December 4018006 2411084 4550000 - 1622251 January, 2016 1622251 651809 2000000 - 100407 February, 2016 100407 1015886 200000 - 694031 March, 2016 694031 891079 100000 - 684366 Month wise Cash sales and cash Deposits from 01.04.2016 to 31.03.2017 are as follows :- Month Op. Cash In hand Cash sales Cash deposited in Bank Cash Withdrawn from Bank Closing Cash in hand April 684366 218823 115138 - 731588 May 731588 16....