TaxTMI 
TaxTMI 
TaxTMI 
2024 (8) TMI 1700
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....t, 1961 (hereinafter referred to as 'the Act') dated 24.12.2019 by the Assessing Officer, ITO, Ward-1(2)(1), Meerut (hereinafter referred to as 'ld. AO'). 2. The assessee has raised the following grounds of appeal before us:- "1. That Hon'ble CIT(NFAC Delhi) ignores all the submission made by the assessee during the course of hearing before him/her and fact and circumstance of the case in confirming the order of Ld. AO which is illegal and deserve to be deleted 2. That the Ld. AO as well as CIT (NFAC Delhi) erred in law by treating the cash sales made before the demonization period as bogus sales while the assessee have already declared income in his P&L Account and amount deposited during demonetization period was ....
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....find that only effective issue to be decided in this appeal is with regard to addition made on account of cash deposit during the demonetization period. 4. We have heard the rival submissions and perused the material available on record. The assessee is an individual earning salary income, income from business of trading and manufacturing of bullion, gold and diamond ornaments and income from other sources. During the year under consideration, the assessee started her business of trading and manufacturing of bullion, gold, and diamond ornaments under the name and style of M/s. Swastik Enterprises (proprietary concern) and got her VAT registration w.e.f. 09.09.2016. The return of income for assessment year 2017-18 was filed by the assesse....
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....assessee had also received advance from M/s. Komal Jewellers amounting to Rs.34 lakhs and M/s. Komal Jewellers and Sons amounting to Rs.44,01,866/-. The assessee furnished confirmation from both these parties. The ld. AO even show caused the assessee that cash was received from several parties during the period 09.09.2016 to 08.11.2016 and directed the assessee to explain the same proving the identity of these persons and genuineness of the transactions. The list of persons from whom the cash was received from the assessee were tabulated from pages 8 to 14 of the assessment order. The assessee also explained the modus operandi that she had received advance from certain customers that are included in the list of parties tabulated by the ld. ....
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....hich was used as a source for deposit of cash in the bank account during the demonetization period. The ld. AO accordingly sought to treat the same as income u/s 69A of the Act. While doing so, he found that the assessee had declared an amount of Rs.10,00,000/- undisclosed income in the form of cash under Pradhan Mantri Garib Kalyan Scheme 2016 on 27.03.2017, for which the ld. AO gave credit and accordingly proceeded to treat the sum of Rs. 88,42,038/- as undisclosed income u/s 69A of the Act. The ld. AO in para 4 page 25 of his order also observed the correctness and completeness of the books of account is not established and accordingly invoked section 145(3) of the Act and rejected the book results. He also observed that the additi....
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....ed by the assessee, which are enclosed in pages 160 to 172 of the Paper Book. The cash book of M/s. Swastik Enterprises (proprietary concern) for the period 01.04.2016 to 31.03.2017 was filed before the ld. AO enclosed in pages 124 to 159 of the Paper Book from where it could be seen that the assessee had sufficient cash balance in her kitty to explain the source of cash deposits made in the bank account during the demonetization period. The cash balance available with the assessee as on 08.11.2016 was Rs. 1,24,88,229/-. Hence, the cash deposits during demonetization period totaling to Rs. 1,23,50,000/- stood properly explained from the source of cash book itself. There is absolutely no reason to doubt the cash sales made by the ....