TaxTMI 
TaxTMI 
2026 (2) TMI 498
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....A)) dated 17.06.2025 wherein the Appeal filed by the Assessee against the Assessment Order passed u/s. 143(3) of the Income Tax Act, 1961 by the Income Tax Officer, Ward-4, Shivamogga (the Assessing Officer), is dismissed. 2. The Assessee is in appeal wherein the Assessee is challenging the addition of Rs. 32,20,000/- made u/s. 68 of the Act and thereby levying a tax u/s. 115BBE. Another issue was the addition of Rs. 94,903/- being the alleged shortfall in the gross profit of the business. 3. The briefly stated the facts show that the Assessee is an individual carrying on the business, filed his return of income for Assessment Year 2017-18 on 27.10.2017 at a total income of Rs. 10,77,890/-. The return of income was picked up for scrut....
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.... retailers at the rate of 10% and therefore, the balance gross profit of Rs. 94,903/- was also brought to tax. 8. The Assessee objected this for the reason thatbecause of the stiff competition, the Assessee is forced to sell liquor at a lower margin. 9. The Ld. Assessing Officer passed Assessment Order u/s. 143(3) of the Act on 19.11.2019 at a total income of Rs. 44,94,150/-. 10. Aggrieved with the Assessment Order, the Assessee preferred an Appeal before the Ld. CIT(A). Assessee submitted the written submission and stated that Assessee has already offered the cash deposit in the bank account as turnover of the Assessee and appropriate gross profit has also been shown as an income. Further, the deposit of Rs. 33,20,000/- is merely ....
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.... The fact shows that Assessee has three proprietary concerns where the combined turnover is Rs. 2,57,69,144/- and during the demonetization period the Assessee has deposited a sum of Rs. 33,20,000/- in the bank account in Specified Banking Notes. As per the explanation given by the Assessee, the Assessee has cash on hand in M/s. Seetharam Medicals of Rs. 5,16,080/-, M/s. Gangaram Sweets of Rs. 11,72,275/- and in M/s. Gavi Siddeswar Bar of Rs. 12,05,800/-. Therefore, prior to demonetization the Assessee has enough cash balance on hand for his business concern. Assessee has also stated that in his books of accounts which are maintained as personal books, the Assessee has cash on hand of Rs. 5,16,441/-. Thus, the cash balance of Rs. 34,10,596/....
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....osit as gross sales credited to the profit and loss account. It is not the case of the ld. AO that any of the expenditure debited by the Assessee on the debit side of the profit and loss account is bogus, there is no reason to believe that the amount deposited by the Assessee which is duly disclosed in the books of the account of the Assessee as sales and as well as bank deposit is unaccounted income of the Assessee. 15. Accordingly, we find that lower authorities have confirmed the addition of Rs. 33,20,000/- incorrectly. Accordingly, we direct the Ld. Assessing Officer to delete the addition of Rs. 32,20,000/- made u/s. 68 of the Act in respect of cash deposit in bank account in Specified Bank Notes during demonetization period. Accord....