TaxTMI 
TaxTMI 
2025 (3) TMI 1897
X X X X Extracts X X X X
X X X X Extracts X X X X
....Act. It may be mentioned here that the appeal was presented before ITAT on 12-11-2024. On behalf of the respondent-assessee, on 25-02-2025, adjournment was prayed on the ground that the written arguments/submission to be presented before ITAT, was under preparation. Accordingly, appeal was adjourned to 6-03-2025. However, on 6-03-2025, once again adjournment was sought on behalf of the respondent - assessee on the same ground. The matter was adjourned for today. Surprisingly, once again adjournment was sought today on the same ground i.e. non- preparation of written arguments. Vide separate order of even date, request for adjournment has been declined. Ld.DR for the Department has advanced arguments. 4. The contention raised on behalf of the appellant-department is that the assessee never produced cash book or invoices of sale before the Assessing Officer, and as such, the assessee- respondent failed to establish its claim that the amount deposited in the bank during demonetization period was from withdrawal and cash sales. Therefore, ld DR has urged that ld. CIT(A), erred in allowing appeal filed by the assessee and in deleting the addition. 5. The assessee is a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as zero cash deposit during the period of 09-11-2015 to 31-12-2015 (before last year relevant period) whereas during the demonetization period, the assessee deposited cash of Rs. 41,50,000/- which was much more than unbelievable increase. During the whole of year i.e. 2016-17, only Rs. 48,50,000/- was found to have been deposited and out of this a sum of Rs. 41,50,000/- was deposited during demonetization period. 2. The Karnataka Ltd. (A/c No. 3642500101032401) S. N. Cash deposited in F.Y. 2015-16 Cash deposited in F.Y. 2016-17 01-04-2015 to 31-03-2016 9-11-2015 to 31-12-2015 01-04-2016 to 31-03-2017 9-11-2016 to 31-12-2016 1 Nil Nil Rs. 6,50,000/- Rs. 6,50,000/- 10. Assessing Officer issued notice u/s 142(1) dated 29-08-2019 and show cause notice dated 4-12-2019 to the assessee calling upon its representative to file source of above said cash deposits. 11. The assessee submitted the reply dated 10-12-2019 and 13-12-2019 pleading therein that the assessee was engaged in manufacturing and trading of agriculture equipments, and further that as on 8-11-2016, the assessee had cash deposits of Rs. 91,90,854/-. 12. After consideri....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., same are reproduced: ''3.2 During the appellate stage, the assessee explained that the sum deposited in Specified Bank Notes was out of the cash balance available in the cash book of the assessee. The assessee also claimed that such available cash in the cash book was partly out of withdrawals made from the month of April, 2016 to 08.11.2016 for a sum of Rs. 93,28,000/- and the balance was out of the cash sales made during the year. The assessee claimed that during the Immediately preceding year, the assessee made cash sales to the tune of Rs. 5,97,91,089/-, out of which total deposits made in the bank account were for Rs. 6,44,08,500/-. There had been withdrawal from bank account during Financial Year 2015-16 for a sum of Rs. 87,50,000/-. All such transactions were recorded in the cash book of the assessee and the books of accounts were duly audited in their case. Similarly. for Financial Year 2016-17, the assessee made total cash sales of Rs. 1,34,81,038/- However, the related cash expenditure was Rs. 83,14,335/-, The total cash deposit made in the bank account for Financial Year 2016-17 was for Rs. 1,56,88,000/- and withdrawal from bank was for Rs. 1,08,28,000/-. Out ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....impugned order, the ld. CIT(A) referred to the claim of the assessee about the cash sales made during the immediately preceding year, to the tune of Rs. 5,97,91,089/-. He also referred to claim of the assessee that cash deposited was available with the assessee being part of the withdrawal made by the assessee to the tune of Rs. 93,28,000/- during the period from April 2016 to 8-11-2016. In the same para, ld CIT(A) observed that all transactions regarding withdrawal of Rs. 87,50,000/-, were recorded in the cash book of the assessee and further said that the books of accounts were duly audited, as regards the F.Y. 2015- 16. However, admittedly, during assessment proceedings, no cash book was produced by the assessee . As regards F.Y. 2016-17, the claim of the assessee was that it had made cash sales to the tune of Rs. 1,34,81,038/- and relative cash expenditure was to the tune of Rs. 83,14,335/-, but nowhere in the impugned order it has been recorded that any invoices/ sale bills were produced by the assessee in appeal proceedings. As regards cash expenditure of Rs. 83,14,335/-, there is no mention in the impugned order as to what evidence was produced by the assessee....