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TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 1039
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....ion period. 3. The facts in brief are that the assessee is engaged in the business of providing internet services to commercial as well as residential users besides, doing other activities. The assessee did not file any return of income during the year u/s 139(1) of the Act nor did respond to notice u/s 142(1) of the Act dated 28.11.2017. Thereafter, the notice u/s 148 of the act was issued and the assessee complied with the notices by filing the return of income 11.08.2008, declaring the total income at Rs. nil. Thereafter, statutory notices along with questionnaire were issued which were not complied with by the assessee. The ld. AO issued notices u/s 133(6) of the Act to Allahabad Bank, city branch, Indinet Service Private Limited, Si....
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.... were the purchases. I note that the assessee deposited into the bank account by way of cash regularly and consistently which is done by the assessee throughout the year out of sale proceeds which is duly accounted for in the books of account. The ld. CIT (A) has rejected the contention of the assessee on the ground that assessee furnished a very short reply by submitting that the money was collected through cash, cheques or NEFTs for the internet service charges and source of cash deposits was not explained. Whereas, on the basis of records available before me, I observe that the assessee has completely and adequately explained the source of cash deposited during the demonetization period to be out of sales proceeds of the assessee. Theref....
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....er, the assessee challenged the order before the ld. CIT (A), who also dismissed the appeal of the assessee after taking into consideration the contention/ submissions along with evidences and also the remand report called for by the ld. CIT (A) during the appellate proceedings. 5. After hearing the rival contentions and perusing the materials available on record, we find that undisputedly the assessee was non-compliant during the assessment proceedings by not responding to the various notices issued to the assessee and therefore, the cash deposited during the year including the cash deposited of Rs. 35,80,000/- during demonetization period was treated by the ld. AO as unexplained money u/s 69A of the Act. We note that during the a....
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....dition. In our opinion, when the ld. AO has accepted the explanation of the assessee on the basis of evidences explain the source of cash by the assessee to be out of withdrawals from the bank accounts of the assessee made during predemonetization and post-demonetization period, the action of the ld. CIT (A) in dismissing the remand report without assigning any reason is wrong and cannot be sustained. In our opinion, the assessee has duly explained the money by referring to the withdrawals from the banks accounts, cash book and statement showing withdrawals and deposits into the bank accounts. The assessee also submitted before us the details of summary of cash withdrawals and deposits to corroborate the fact that the deposits of cash were ....
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....(page -2 and 3 / para - 2), and also narrated by the Ld. CIT (A) in his appeal order, are factual events that has occurred in the FY 2008-09 (relevant to the A.Y. 200910), andare issues to which we are not concerned at the moment, because it does not relate to the year under appeal. 12.3 We only focus on the financial transactions in the bank account of the assessee in PNB Gramin Bank, for the financial year 2009-10 (Asst year 2010-11) the relevant year under appeal. We find on reading of the bank statement, that the opening balance brought forward on 1st April 2009 is 20. 30 lakhs, and there has been subsequent credit in the said account vide bank transfers (other than cash), to which neither the AO nor the Ld CIT(A) has raised any queries....
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....essee." 7. Similarly, in the case of Ajaya Data (supra), the Co-ordinate Bench has held as under: 6. We have considered the rival submissions as well as the relevant material on record. We note that the only issue in this ground is whether the Ld. CIT(A) is justified in not allowing set off of cash considered unexplained by him against the cash withdrawal of Rs. 4,72,000/- made from M/s Vijay Industries between 05.04.2014 to 20.04.2015. We note that no document is found in search to come to a conclusion that the amount withdrawn by the assessee from M/s Vijay Industries has been utilized elsewhere. There is no law which prohibits an assessee to keep cash in hand and therefore only because assessee has not given explanation....