TaxTMI 
TaxTMI 
2026 (7) TMI 184
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the Ld. Income Tax Officer-23(2)(6), Mumbai (for brevity the 'Ld. AO') order passed under section 143(3) of the Act date of order 26.12.2019. 2. The brief facts of the case are that the assessee filed the return by declaring total income Rs. 18,80,380/-. the return was processed u/sec. 143(1) of the Act and the case was selected for scrutiny under CASS. The Ld. AO found that the assessee had deposited cash during the demonetization period amount to Rs. 2,02,23,980/-. In compliance of the notice of the Ld. AO the assessee had submitted sale register, purchase register, stock register and cash book before the Ld. AO and the assessee has made the claim that during the demonetization he had managed to sell to more than 300 clients on 08.11.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....see had made the cash sale to the customers in this duration and from these respective sales the assessee deposited the cash in the bank. The Ld. AO without rejecting the books of accounts suomotu disallowed 15% of the sale amount to Rs. 2,02,23,980/- which comes to Rs. 30,33,597/- is unjustified. The observations of the Ld. AO in para no.12 is reproduced as below: "12. The assessee's reply is perused, considered and placed on record. However the same is only partially acceptable. It is true that assessee could provide sales register, purchase register, stock register, and cash book. However, these documents have been provided during the course of scrutiny assessment proceedings in F.Y. 2019-20 i.e. after lapse of more than two....
X X X X Extracts X X X X
X X X X Extracts X X X X
....duly recorded in the books of account are not disputed. It is the submission of the assessee that it had received advance money from walk in customers for sale of jewellery over the counter and the amount so received was duly recorded in the books of account. The said amount alongwith other cash balance available with the assessee was deposited into the bank account after announcement of demonetization by the Government of India. He also submitted that the assessee has raised sale bills against the said advances in the name of respective customers. Since the transaction was less than Rs. 2.00 lakhs, it was stated that the assessee did not collect complete details of the customers. Thus, it is seen that the advance amount collected from cust....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... filer of income tax returns and is engaged in the business of trading in gold and silver bars/coins. During the impugned assessment year, the assessee had effected cash sales on 08.11.2016 after the announcement of demonetization of SBNs. The assessee had recorded sales amounting to Rs. 2,02,23,980/- during the period from 8:00 PM to 12:00 Midnight on 08.11.2016 and had catered to around 300 customers. It is an undisputed fact that the assessee had duly recorded the impugned sales in the regular books of accounts and also disclosed the same in the returns filed under the VAT Act. The Ld. AO had substantially accepted the sales effected by the assessee after the announcement of demonetization. However, without rejecting the books of account....