2026 (6) TMI 290

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Respondent: Shri Rameshwar P Meena, Sr.DR ORDER PER ANNAPURNA GUPTA, AM: The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to as "NFAC"), Delhi (hereinafter referred to as "CIT(A)") dated 29.12.2025 passed under Section 250 of the Income Tax Act, 1961 (hereinafter refe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat the assessee had made substantial cash deposits in Specified Bank Notes (SBN) during the period of demonetization. A notice u/s.148 of the Act was issued and, thereafter, the assessment framed making addition of cash deposited in the bank amounting to Rs. 63,96,500/- treating the same as unexplained money u/s.69A of the Act. 4. Ld. CIT(A) confirmed the same. 5. We have heard both the par....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....enomination Bank Notes would continue to be accepted at Government Hospitals and pharmacies and others including petrol, diesel, gas stations of Public Sector Oil Marketing Companies. At para 5.8, Ld. CIT(A) notes that the assessee being a private petrol dealer, it was not authorized to collect the SBNs. Despite so the assessee collected them and deposited the same in its bank accounts. He further....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eration of such SBNs could not be treated as genuine. Without disputing/dislodging the fact of the cash deposited in the bank account representing sales of the assessee, the cash deposited, we hold, could not have been treated as unexplained merely for the reason that the assessee acted in an illegal manner by making sales in exchange of SBNs which it was not authorized to do. Any illegal act cond....