TaxTMI 
TaxTMI 
2024 (4) TMI 1392
X X X X Extracts X X X X
X X X X Extracts X X X X
....irm which is engaged in the business of trading in silver, gold and diamond jewellery. The assessee e-filed its return of income on 27.09.2017 declaring an income of Rs. 5,56,474/-. However, the case was selected for scrutiny for the reasons, "cash deposit during demonetization period". During the assessment proceedings, the Assessing Officer noted that during the demonetization period from evening of 08.11.2016 to 31.12.2016, the assessee had deposited huge cash. amounting to Rs. 19430000/- in its bank account with Punjab National Bank. The said amount was deposited in demonetized old currency notes. The assessee was asked to verify the nature and source of such cash deposits and provide complete details regarding the same. In response, the assessee submitted that the source of the aforesaid cash deposits was from its cash sales. The assessee filed its cash account and details of cash sales before the Assessing Officer. The Assessing Officer after analyzing the documents furnished by the assessee observed as under: (i) The cash sales in the month of October 2016 were disproportionally higher to any other months' cash sales in the year 2015-16. (ii) Depo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....-18 iv. VAT returns for A.Y 2017-18 v. VAT assessment order for F.Y 2016-17 vi. Bills no. wise details of cash sales vii. Month wise sales for the A.Y 2016-17 and 2017-18 viii. Month wise cash receipts A.Y 2016-17 and 2017-18 ix. Party wise purchases summary 5.1 The ld. Counsel has further submitted that it was undisputed that the assessee had purchases/stocks of which sales were made and that the purchases were not doubted by the Assessing Officer. That the books of account of the assessee were not rejected. He has further submitted that the Assessing Officer has compared the sales of the Diwali season for the year 2016 with that of the sales during the year 2015 and noted that the sales during the year 2016 were comparatively high. He doubted that the alleged sales were made during demonetization period against banned currency notes. That, however, purchases were not doubted. That only the period of sales was doubted which was purely a suspicion of the Assessing Officer and there was no evidence available to the Assessing Officer that the sales were made against demonetized currency notes as alleged. 6. The ld. DR, on th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d merely on suspicion. There is no evidence brought on record that the cash sales made by the assessee were not genuine. The burden is upon the Assessing Officer in this respect who alleges sales to be ingenuine. The additions cannot be confirmed in this case merely on the basis of suspicion when the assessee proved his case and has furnished sufficient documents. The issue is squarely covered by various decisions of the Coordinate Benches of the Tribunal. The ld. Counsel for the assessee in this respect has relied upon the following case laws: i) ACIT vs. Goel Jewellers Overseas Corp in ITA No. 1597/Del/2022 (ITAT Delhi) ii) DCIT Central Circle-1, Ludhiana vs. M/s Roop Fashion reported in [2022] 98 ITR (Trib) 419 [ITAT Chand)] iii) Gulshan Kumar vs. DCIT in ITA No. 488/Chd/2022 (ITAT Chandigarh) iv) Smt. Tripta Rani vs. ACIT, Ludhiana in ITA No. 135/Chd/2021 (ITAT Chandigarh) v) Madan Lal Aggarwal HUF vs. DCIT in ITA No. 28/CHANDI/2023 (ITAT Chandigarh) dated 18.12.23 7.1 We find that the issue involved in this case is squarely covered by the decision of the Coordinate Chandigarh Bench of the Tribunal in the case of 'Madan Lal A....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the appellate authorities including the Tribunal went on to substitute their own judgment for the actual figures of wastage emerging from stock register and from the books of accounts of the assessee? When the books of accounts including stock register etc. have neither been rejected nor are doubted, accounts could not be bye passed merely on the whims and fancies of the authorities." 11.3 Further, reference was drawn to the decision of the Hon'ble Supreme court in case of Mehta Parikh and Company vs. CIT (1956) 30 ITR 181 (SC) wherein it was held as under: "It has to be noted, however, that beyond these calculations of figures, no further scrutiny was made by the Income-tax Officer or the Appellate Assistant Commissioner of the entries in the cash book of the appellants. The cash book of the appellants was accepted and the entries therein were not challenged. The Tribunal also fell into the same error. It could not negative the possibility of the appellant being in possession of a substantial number of these high denomination currency notes. It, however, considered that it was impossible for the appellants to have had 61 such notes in the cash balance in th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the impugned order and the same reads as under: "5. The appellant submitted during the appellate proceedings that it is part of CM jewellers group and therefore it is covered by the declaration of Rs. 3,00,00,000/- made by the group under PMGKY. Further, it was submitted that the cash of Rs.21,00,000/- was deposited out of day to day cash sales. The appellant submitted that there was no justification to make addition u/s 68 of the Act on account of cash sales recorded in books of accounts. The Ld. AR also questioned retrospective applicability of section 115BBE of the Act. After taking into consideration the above facts, the opportunities vide letter dated 24.08.2021 and 17.09.2021 were granted to the appellant to produce complete sale bill books and complete books of accounts for the year under consideration in order to verify the grounds of appeal and to verify the above contention. In response, the appellant submitted only copy of sales account, however, failed to produce the complete sale bill books for the period under consideration. Upon perusal of the submission of the appellant, it is noted that the cash sales shown by the appellant during the months of Octob....