TaxTMI 
TaxTMI 
2024 (12) TMI 1767
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....ome-tax Act, 1961 (hereinafter referred to as 'the Act'). 2. Case called twice. None appears at the assessee's behest. We accordingly proceeded ex-parte against him. 3. The Revenue pleads the following substantive grounds in the instant appeal: 1. On the facts and in the circumstances of the case and in law the learned CIT(A) has erred in deleting the addition of Rs. 1,72.30,300/- u/s 68 of the Income Tax Act, 1961 ("the Act"). The Id. CIT(A) erred in considering that the cash deposit in old currency (Specified Bank Notes) in the bank account of Rs. 12,00,000/- on 17.11.2016 Rs. 15,00,000 on 19.11.2016, Rs 21,63,000 on 23.11.2016 and Rs. 42,000/- on 15.12.2016 was from the balance available as on 09.11.2016. Where....
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....sh deposit during the demonetization period. 6.4.1 The appellant has mentioned in grounds of appeal that the appellant had filed its return of income on the basis of Audited Financial Statements in which the banking transactions had been duly considered and hence, the AO ought not to have made an addition of Rs. 1,72,30,000/- u/s 68 read with section 115BBE of the Act ignoring the past history of the appellant for the assessment years 2014-15 to 2016-17 and in spite of the observation of the AO in the assessment order that the appellant was engaged as wholesaler and retailer of FMCG Products. The appellant has also mentioned that the AO erred in ignoring the documentary evidence of VAT returns filed by the appellant declar....
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....led comparison of cash deposits in bank accounts during demonetisation & other period of FY 2016-17 as well as in corresponding period of FY 2015-16, vide submissions dated 18/12/2019. Such comparison is reproduced below: M/s Mobi Tradelink Assessment Year 2017-18 Detail of Cash Deposit during the F.Y. 2015-16 S. No. Bank Account No. Cash Deposit from 01.04.2015 to 08.11.2015 Cash Deposit from 09.11.2015 to 31.12.2015 Cash Deposit from 01.01.2016 to 31.03.2016 1 Nainital Bank Limited, A/c No. 6000000000155 53,133,000.00 10,411,500.00 22,361,850.00 2 Karnataka Bank Limited, A/c No. 553....
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....ssions before the AO on 29/11/2019 wherein the details regarding cash deposits during demonetization were filed and it was explained that such deposits were in regular course of business transactions and were deposited partly in legal tenders and not entirely in SBNs. Also, before the AO, appellant had filed bank certificate dated 23/12/2019 from Nainital bank to support its claim that cash deposits were as below: Date Particulars Amount (In Rs.) Remarks 08-11-2016 Cash (Legal Tender) 1,100,000.00 Legal Tender 17-11-2016 CASH OLD CURRENCY 1,200,000.00 Deposited out of balance available as at 09.11.2016 19-11-2016 CASH OLD CURRENCY 1,500,000.00 Deposited out of balance available as at 09.11.201....
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.... way of routine business transactions, were commensurate with earlier year cash deposits during same period, were also commensurate with cash-in- hand reflected in balance sheets of the appellant for this year and last year. Thus, considering the above discussion, addition of Rs. 1,72,30,000/- made by the AO is hereby deleted. Ground no. 6, 7 & 8 of appeal are allowed." 5. We have given our thoughtful consideration to the Revenue's pleadings as well as the assessee's stand adopted all along the cash deposits made during demonetization amounting to Rs. 1,72,30,000/- in fact represented its cash sales/gross turnover having total figures of Rs.18,36,41,838/- during financial year 2016-17. We find from a perusal of the case ....