2026 (4) TMI 481

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....3) of the Act on 27-12-2019. The sole grievance of the assessee is confirmation of additions of cash deposit during demonetization period for Rs. 36.99 Lacs and confirmation of another addition of Rs. 6.32 Lacs. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. The assessee being resident firm is stated to be engaged in wholesale and retail trade of readymade garments. Proceedings before lower authorities 2.1 To verify the sources of cash deposits of Rs. 87 Lacs during demonetization period, the return of income of the assessee was scrutinized. The assessee made deposits of Rs. 60 Lacs on 10-11-2016 and deposits of Rs. 27 Lacs on 11-11-2016. The assessee explained that it had opened t....

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....ctober, 2016 was Rs. 41.87 Lacs out of which sales of Rs. 6.54 could be accepted and unexplained sales was computed at Rs. 35.33 Lacs. The average sale from 01-11-2016 to 08-11-2016 was computed at Rs. 1.74 Lacs as against Rs. 3.41 Lacs as shown by the assessee and the remaining Rs. 1.66 Lacs was held to be unexplained sales. Finally, the aggregate amount of Rs. 36.99 Lacs was added back to the income of the assessee as explained sales. 2.3 The second issue that was identified by Ld. AO was that the assessee reduced fixed assets by Rs. 6.32 Lacs on sale of various assets but the assessee did not submit any bills to substantiate the same. In the result, the amount of Rs. 6.32 Lacs was further added to assessee's income. 2.4 The Ld. CIT....