2025 (2) TMI 1925

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....ct. 2. Assessee has raised following grounds of appeal : "On facts and in law, 1] The Id. CIT(A) erred in confirming the addition of Rs. 14,00,000/- made on account of unexplained money u/s. 69A r.w.s. 115BBE of the Act. 2] The Id. CIT(A) erred in holding that the appellant had failed to prove the sources of the cash deposited in bank account of Rs. 14,00,000/- during the demonetization period and hence, the addition made by the Id. A.O. was justified. 3] The Id. CIT(A) failed to appreciate that cash deposited by the assessee in the bank account was mainly out of the cash received by it from Pratap Tea Company Pvt. Ltd. as a refund of the share application money and hence, as the sources of the said ca....

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.... examination of details filed by the assessee, ld. AO observed that the assessee has claimed to have received refund of share application money from Pratap Tea Company Pvt. Ltd. (PTCPL) at Rs. 12,61,880/- during F.Y. 2013-14 and this amount remained as cash in hand with the assessee HUF. Ld, AO in order to verify the core contents of submissions filed by the assessee issued notice u/s.133(6) of the Act to the Principal Officer of PTCPL to which necessary reply was furnished along with ledger account of assessee HUF and copies of annual returns of PTCPL for financial ending 31.03.2013, 31.03.2014 and 31.03.2015. Certified true copy of resolution passed by PTCPL for refund of share application money was also filed. Karta of the HUF was the Di....

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....a of the HUF is director in Pratap Tea Company Pvt. Ltd. The only issue that arises for my consideration is whether the ld.CIT(A) was justified in affirming the action of the AO making addition of Rs. 14.00 lakh alleging to be unexplained cash deposit u/s.69A of the Act along with invoking section 115BBE of the Act. It has been argued by ld. Counsel for the assessee that the source of alleged cash deposit mainly includes Rs. 12,61,880/- on account of refund of share application money along with cash out of other accumulated income of past many years and the opening cash balance as on 01.04.2016 was Rs. 14,94,983/- and the same was the source of the alleged cash deposit. The assessee has furnished the cash book for F.Yrs. 2013- 14 to 2016-17....