TaxTMI 
TaxTMI 
2026 (4) TMI 716
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....n a variety of goods. During the assessment proceedings, the Assessing Officer observed that the assessee had deposited cash of Rs. 1,44,94,000/- in old currency in its bank account during demonetization period as under :- S. No. Bank Name Account No. Amount SBN 1 Corporation Bank 56400201000467 Rs. 31,00,000 2 Corporation Bank 56401601000080 Rs. 1,04,00,000 3 Kotak Mahindra 8911650256 Rs. 9,71,500 4 Syndicate 90133070009565 Rs. 22,500 Total Rs. 1,44,94,000 4. The assessee was asked to explain the source of the same, and further asked to submit the relevant information on the basis of month wise cash sales and cash in hand for the FY 2015-16 and 2016-17. The assessee filed the relevant information. Further assessee submitted the following submissions, for the sake of brevity it is reproduced below :- "The assessee had 6 outlets spread within the distance of 50kms and all being individually run by the team of professionals without any interference of the owners/ Directors of the company. All the cash sales and proceeds are independently responsibility of the respective Shop Managers. In....
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....dences in support of claim and deposit in new currency. In response assessee submitted that assessee has actually deposited Rs. 2,43,67,834/- only and accordingly assessee has filed the details of cash deposit in various banks maintained by the assessee. However, Assessing Officer forwarded the following chart to the assessee and asked the assessee to substantiate the sources for such deposits :- S. No. Bank Name A/c No. Amount Rs. 1 Syndicate Bank 90133070009565 14,55,247/- 2 Corporation Bank 5640020100046 34,01,085/- 3 Corporation Bank 56401601000080 1,35,89,730/- 4 Kotak Mahindra Bank 8911620256 56,57,855/- 5 Corporation Bank 5640160100008 1,44,16,672/- 6 Corporation Bank 56400201000467 33,68,640/- 6. By referring to the above chart, assessee submitted that the serial No.2 and serial No.5 of the account mentioned by the Assessing Officer are not belongs to the assessee, and assessee has submitted that in three bank account mentioned by the Assessing Officer in which assessee has deposited in SBN of Rs. 1,40,29,500/- along with certificate of deposit of old currencies were also submitted before....
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....as disinterest on its part to pursue the appeal, but ignoring that all facts and explanations of the appellant along with the supporting evidences were already available on AO's record, which were not even called for examination. Thus, the appellate order made mechanically by simply confirming the assessment order without applying his mind and thereby violating the mandatory requirement of Section 250(6) of the Act which requires a reasoned and speaking order, must be quashed. 2. Ld. CIT (Appeals) erred in law and on facts in confirming the addition of Rs. 35,22,000/- made by the AO u/s 68 r.w.s. 115BBE by treating cash deposits made in bank accounts during the demonetization period in December-2016 only as unexplained by ignoring the fact that the addition had been made arbitrarily, whimsically and simply on conjectures and surmises by the AO: and without bringing any evidence on record to the contrary. Thus, the addition so made must be deleted. 3. Ld. CIT (Appeals) erred in law and on facts in confirming the addition of Rs. 35,22,000/- made by the AO u/s 68 r.w.s. 115BBE on ex-parte basis for cash deposits made during the demonetization period as unexplaine....
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....so filed detailed cash deposits made by the assessee during demonetization period before the Assessing Officer and Assessing Officer noticed that assessee has submitted the details of cash deposits in SBN to the extent of Rs. 1,44,94,000/- and he observed that assessee has not deposited the SBN once the demonetization is announced and should have deposited one go, at the same time, he observed that there is no logic of depositing cash in various instances. He acknowledged the fact that assessee is having different stores at different locations time span of deposits may be spread over the number of days, the cash deposited after long period is not justified and accordingly, he proceeded to make the addition of Rs. 35,00,000/- deposited on 14.12.2016 and Rs. 3,500 on 03.12.2016 in Kotak Mahindra Bank and Rs. 18,500 on 06.12.2016 to 30.12.2016 in Syndicate Bank. We observed that the assessee has made the total cash deposits of SBN currencies of Rs. 1,44,94,000/- which was also confirmed by the Assessing Officer. From the details of cash deposit submitted by the assessee before the Assessing Officer are as under :- Month Opening Cash Cash Sales Cash Deposit Cash Withdraw....