2025 (2) TMI 1529

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....ng the credits in the bank account as unexplained cash credit u/s. 68/69A. 3. The brief facts are that assessee is an individual and engaged in the business of selling school uniforms and uniform fabrics which is supplied to various schools and students. In the course of assessment proceedings various notices were issued and it has been stated that in response to such notices assessee has filed her reply through online e-proceedings portal as well as along with the details passed by the ld. AO. 4. Ld. AO sought information u/s. 133(6) from bank wherein assessee is having an account i.e. Canara Bank, Kandivili (E), Mumbai wherein it was found that there were total credits in the bank account for the F.Y.2016-17 of Rs. 62,68,716/- out o....

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.... online refunded Total 6,183,910   7.1 He pointed that the aggregate deposits are Rs. 61,83,910/- and not 62,68,716/- as noted by the ld.AO. He submitted that the deposit in the bank statement consists of internal bank transfers, opening balance, cash deposited out of cash in hand as well as expenses which have been refunded back into the account. All these facts were duly brought before the authorities below. It was only during the demonetization period assessee has deposited cash of Rs. 16,45,000/- between 09/11/2016 to 30/12/2016 in her two bank accounts. These deposits are out of sales of fabrics and school uniforms to the school students. The assessee's sales consist of both cash sales and credit sales and the cash dep....

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....aced on record and finding given in the impugned order it is seen that ld. AO has added the entire deposits / credits appearing in the bank account without verifying that there were certain internal bank transfers, opening balance, deposits out of sales made which are duly shown in the books of accounts etc. It is also not been disputed that assessee is engaged in selling of school uniforms and fabrics to school students and these sales are mostly in cash. The entire cash deposits in the bank accounts have been stated to be out of cash sales during the year which is also reflected in the cash book placed in the paper book. This specific document was filed before the ld. AO physically before the ld. AO on 14/11/2019 and also on 18/11/2019. T....