2026 (6) TMI 537

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.... of the Income Tax Act, 1961 (hereinafter referred to as the "Act"). 2. The assessee raised the following grounds of appeal: 1. The order of the Id. CIT(A) is without jurisdiction, contrary to law, facts and circumstances of the case and is opposed to the principles of natural justice. 2. On the facts and circumstances of the case and law, Id. CIT (A) grossly erred & failed to appreciate that the cash deposits are only the appellants own funds. 3. The Id. CIT(A) grossly erred in sustaining the addition of Rs. 57,00,000/- u/s.68 of IT act solely based on incorrect facts and based on presumption. 4. The Id. AO erred in law and on facts in making addition of Rs. 57,00,000/- u/s.68 IT Act on account of cas....

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....with South Indian Bank in A/c.No.0475073000000381 in SBNs amounting to Rs. 57,00,000/- during demonetisation period was treated as unexplained cash credit u/s.68 of the Act after reducing the cash balance as on 08.11.2016 of Rs. 1,73,192/- (Net Rs. 55,26,808/-) and added to the total income. 4. Aggrieved by the order of the AO the assessee filed an appeal before the ld.CIT(A) and submitted that the cash deposits are made out of the cash withdrawn in the initial months of the assessment year. However, the ld.CIT(A) confirmed the order of the AO for the reason that the assessee's explanations for the source of cash deposit are inconsistent before the AO and the first appellate authority. Aggrieved by the order of the ld.CIT(A), the assesse....

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....erial available on record and gone through the orders of the authorities along with the documents filed by the ld.AR. The undisputed facts are that the assessee deposited Rs. 57,00,000/- in SBNs during the demonetisation period and had earlier withdrawn Rs. 63,50,000/- from its bank account between April and July 2016. The withdrawals are reflected in the bank statements and are not disputed by the Revenue. 8. The cash deposit of SBNs during the demonetisation period of Rs. 55,26,808/- has been added u/s.68 of the Act as unexplained money. For invoking section 68 of the Act, the primary condition is that there must be a credit in the books of the assessee for which no satisfactory explanation regarding nature and source is offered. In th....