AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (9) TMI 1919
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.... in this appeal: - "1. On facts and circumstances of the case and in law the NFAC/CIT(A) erred in confirming the addition of Rs. 43,33,637/- made without any statutory provision dismissing appeal of assessee and sustaining order of ld. AO (ITO Ward 2(1), Faridabad) is totally arbitrary, unlawful and contrary to mandate of 1961 Act without appreciating the facts and circumstances of the case; 2. On facts and circumstances of the case and in law the NFAC/CIT(A) erred in confirming the addition of Rs. 43,33,637/- made by Ld. AO in discarding disclosed cash sales forming part of cash in hand out of books without rejecting such audited books of accounts without following the mandate of law; 3. On facts and ci....
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....e Income Tax Act, 1961 (hereinafter 'the Act'). 3. The relevant facts giving rise to this appeal are that the appellant/assessee is a proprietor of Goel filling station Petrol Pump at Palwal, Haryana. He filed his Income Tax Return (hereinafter, the 'ITR') on 31.10.2017 declaring income of Rs. 7,92,180/-. The case was picked up for scrutiny, under CASS, on the reasoning that the appellant/assessee had deposited substantial cash during the demonetization period which was abnormal than the deposits of predemonetization period. During the assessment proceedings, the appellant/assessee claimed that the cash deposits aggregating to Rs. 43,33,637/- were nothing but the cash sales of petroleum products (diesels and pet....
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....ore, the assessee is a proprietorship concern & dealing in Sale & Purchase of petroleum products. The assessee has deposited cash of Rs. 1,93,11,900/- in his current and saving bank accounts respectively during the demonetization period maintained with State Bank of India, which strengthens the facts that the particulars of cash receipts were created with an ulterior motive so that the advantage can be taken at the latter stage of the assessment and realization from debtors, decrease in cash deposits and further decrease in sales/ realization from the debtors so that it could become a part to explain the source of cash deposit. 12. In view of the foregoing discussions, submissions of the assessee, facts and material available ....
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....ddition of Rs. 43,33,637/- is made to the taxable income of the assessee on account of income earned from unexplained and undisclosed sources and the same is chargeable to tax u/s 115BBE of the Act. since the assessee has concealed the particulars of his income and furnished inaccurate particulars in respect of the amount as discussed here above in this order and being satisfied, in terms of section 271AAC(1) of the Act, is hereby initiated and accordingly, notice u/s 270 for penalty proceedings u/s 271AAC(1) of the Act, is being issued separately." Besides the above addition of Rs. 43,33,637/-, the AO also made disallowance of interest of Rs. 3,61,743/- and addition of Rs. 12,64,008/- as unexplained credits/deposits ....
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.... unexplained. Further, the AO had also not allowed set off of the opening cash in hand though he had never questioned/doubted such opening cash in hand. The Ld. AR demonstrated with the help of cash flow statement that there were never negative cash balances in any of the months. Hence, the table prepared by the Ld. AO in the para 7.8 of the assessment order was not logical and justified. The Ld. AO had treated the cash sales of November, 2016 as abnormal, though he did not consider that the demonetization was also not a routine feature and the petrol pumps were permitted to sale petroleum products in cash in month of November, 2016 even during the demonetization period, which resulted the abnormal cash sales and consequential cash deposits....