TaxTMI 
TaxTMI 
2026 (2) TMI 621
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.... initio, and unsustainable in law, as the same were based on mere change of opinion and absence of fresh tangible material, and are thus vitiated. 3. That the addition of Rs. 1,03,83,030/- made under section 69A of the Act and confirmed in appellate proceedings is wholly arbitrary, being based merely on suspicion, conjectures, and surmises, which ignores the fundamental evidences on record. 4. That the Assessing Officer as well as the CIT(A) have completely ignored the material facts that: -The appellant had duly discharged VAT liability on the sales corresponding to the alleged cash deposits; -The cash sales made during October 2016 were consistent with the historic trend of the appellant's business, where 90% to 95% of total turnover is consistently in cash; -The entire cash deposited was subsequently utilized to purchase gold stock through banking channels, establishing a clear and traceable business nexus between cash sales and banking transactions; -The appellant had sufficient stock in hand, and no extraordinary purchases were made before recording the impugned sales in October 2016, clearly indicating that the sales w....
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....tax under the provisions of the Income-tax Act. Taxing the entire sale proceeds as income amounts to taxing gross receipts instead of income, which is impermissible in law and leads to double taxation, since the profit element has already been offered to tax in the trading results accepted by the Assessing Officer. 12. That the appellant craves leave to amend, modify, or raise additional grounds of appeal at the time of hearing, if necessary." 3. Brief facts emerging from records are that the assessee a partnership firm engaged in the business of 'Gold jewellery and ornaments", has deposited cash amounting to Rs. 1.03 crores in its bank account with Allahabad bank, during the demonetisation period and filed its regular return on 30th August, 2017, declaring total income at Rs. 1,52,910/-. 3.1 Reassessment proceedings were initiated (as per procedure) vide notice u/s 148 dated 29/03/2021, and in course of scrutiny, books of accounts (cash book, ledger, stock register) produced and examined, and the cash deposit in bank amounting to Rs. 1.03 crores, were explained by the assessee to have been deposited out of regular sale proceeds of gold jewelleries out of stock in tr....
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....ensive evaluation of the facts, submissions, and legal provisions applicable to the case, it is concluded that the reassessment proceedings were validly initiated under Section 148 of the Income-tax Act, 1961. The Assessing Officer followed due procedure and recorded proper reasons before issuing the notice, and there is no infirmity in the initiation of reassessment. Further, the addition of Rs. 1,03,83,030/- under Section 69A is found to be based on cogent reasoning and in accordance with the statutory framework. The assessee's explanation regarding the source of the cash deposits, allegedly arising from jewellery sales during the demonetization period, remains unsubstantiated by verifiable evidence. The claimed sales are excessively disproportionate to past trends, lack customer-wise documentation, and were rightly rejected by the Assessing Officer. Considering the timing and nature of the reassessment order, the application of the amended provisions of Section 115BBE-prescribing a higher tax rate of 60% along with surcharge and cess is appropriate and legally sustainable. The return filed by the assessee in response to notice under Section 148 does not qua....
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....;ble Tribunal, being the final fact-finding authority, is fully empowered to examine and consider such documents, and may kindly take the same on record and adjudicate the appeal after considering these documents. Non-consideration of these material facts would cause grave prejudice to the appellant and would defeat the ends of justice. 6. Without prejudice, and in the alternative, if the Hon'ble Tribunal is of the considered view that these documents require verification at the assessment level, it is humbly prayed that the matter may kindly be restored/remanded back to the file of the Assessing Officer for the limited purpose of verification and fact-finding after considering the aforesaid documents, with appropriate opportunity of being heard to the appellant. 7. The appellant craves leave to rely upon any further submissions, documents or explanations that may be required or permitted by the Hon'ble Bench in the interest of justice. In view of the above facts and circumstances, it is most respectfully prayed that the Hon'ble Tribunal may kindly consider the submissions made herein and pass such order as may be deemed fit in the interest of....