TaxTMI 
TaxTMI 
2024 (5) TMI 1709
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....sessment proceedings. (ii) Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) is correct in comparing only cash deposited into the bank account to cash sales made by the assessee for both the F.Y. 2015-16 and F.Y. 2016-17 and ignoring the fact that there were abrupt changes in cash sales &cash deposited in F.Y. 2016-17 with respect to F.Y. 2015-16. (iii) Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) is correct in ignoring that the assessee has not disclosed any cash deposited in the ITR for the year under consideration, which proves that the assessee company has intentionally submitted wrong information to escape tax liability on cash deposited during demonetization period. (iv) Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) is correct in ignoring that the assessee has not submitted any evidence like customer name, customer I address, PAN of the parties from whom cash has been received, items sold in cash, reconciliation of monthly turnover with indirect taxes return-to prove the cash sales made, during the year under consideration. (va) Whether on law and f....
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....reful consideration of the facts and material on record, and after analyzing the month-wise comparative details of cash deposits, assessee's turnover, the specific circumstances and nature of business of the assessee in the light of the evidences supplied by the assessee, deleted the addition by concluding as under: "8.2 I have considered the submissions and facts of the case. The appellant is in the business of selling cars, servicing and repairing cars of Maruti Brand alongwith purchasing and selling pre owned cars under True Value brand of Maruti Suzuki India Ltd. Return was filed by the appellant at an income of Rs. 5,39,28,160/- and assessment was completed at an income of Rs. 8,32,35,660/- after making addition of Rs. 2,93,07,500/- u/s 68 of the IT Act, 1961 on account of unexplained deposit in the bank account. The appellant submitted cash sales and cash deposited chart which is in the below mentioned table:- Month Opening Balance Cash Receipts Cash Deposited in Bank Cash transfer red to Petty Cash Interunit Transfers Cash Withdrawn from Bank Payments Made Closing Balance Apr-16 1,14,59,660 16,4....
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.... obvious that during the months of April, May and October the cash received on account of business receipts are almost same. The cash deposit in April 2016 was even higher than that of October or after demonetization. 8.2.1 Further, Demonetization was immediately preceded by season of Diwali during the month of October which is the main season of sales for the automobile industry and many other industries all over the country. It's an auspicious occasion as per the religious and secular ideology followed all over the nation and people are generally inclined towards purchase of new assets for their family. The sales in the year under consideration have been increased from Rs. 6,68,42,73,991/- to Rs. 8,27,28,79,175/- i.e.. number of units sold have increased from March 2016 to March 2017. In view of this, it is quite an observable fact that increased sales have added fresh revenue to the company and hence revenue collection has increased. The surge in sale of cars is normally noted during Diwali and same trend can also be noticed from the books of accounts pertaining to past years of the appellant. The comparison of record of cash receipts during the period of D....
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....been observed that the appellant has filed all the details which was called by the AO during the course of assessment proceedings Thus, the AO cannot conclude that the appellant was not able to provide the explanation or the details asked and hence, the genuineness of the cash receipts was not proved. The appellant has submitted that its sale is recorded through online software provided by the Maruti Suzuki India Ltd. and all the other transactions are recorded in the regular books of account. 8.3 In view of the above, considering the fact that there is no adverse finding on record, I am of the view that the AO has wrongly made addition of Rs. 2,93,07,500/- u/s 68 of the Act as the appellant has explained the source of the cash deposited in the bank account during the assessment as well as appellate proceedings. In view of the same, the addition made by the assessing officer is hereby deleted and the ground of the appeal is allowed." 12. The Revenue is now aggrieved and has come in appeal before us. 13. Before us, the ld. DR relied upon the orders of the Assessing Officer. The ld. DR argued the cash was deposited during the demonetization period and that the Assessin....
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....espect to the nature and source of cash deposited in various bank accounts during the demonetization period (i.e.,09.11.2016- 31.12.2016) has acted merely on surmises, conjectures, suspicion, presumptions and assumptions. 18. It is the contention of the ld. counsel for the assessee that the deposits made are part of sales, pre-booking advances etc. received during this period. The proceeds which were in cash during this period were accumulated and same are being gradually deposited in bank accounts of the assessee as the branches did not accept very high amount or cash in one go. 19. We have heard the rival submissions and have carefully perused the relevant material on record and cases relied upon. The CIT(A) has meticulously analyzed the cash deposits during FY 2015-16 and 2016-17 to conclude that all the cash receipts were business receipts and that the invocation of section 145(3) was erroneous. We also find that the Ld DR could not controvert the fact that the assessee maintains its accounts on a specific software which is linked with Maruti Suzuki software and is simultaneously updated whenever the assessee makes any entry in it. The assessee has filed all details regar....
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....r which cash was received from the customers was already admitted as income and if the cash deposits are added under section 68 of the Act that will amount to double taxation once as sales and again as unexplained cash credit which is against the principles of taxation. It is also on record that the assessee was having only one source of income from trading in beedi, tea power and pan masala and therefore provisions of section 115BBE of the Act will have no application so as to treat the income of the assessee as income from other sources. Hon'ble Kolkata Tribunal in the case of CIT Vs. Associated Transport Pvt. Ltd. reported in 84 Taxman 146 on identical facts took the view that when cash sales are admitted and income from sales are declared as income, wherein the Hon'ble Tribunal found that the assessee had sufficient cash in hand in the books of account of the assessee, that there was no reason to treat the cash deposits as income from undisclosed sources. The Hon'ble Vishakapatnam Tribunal in the case of ACIT Vs. Hirapanna Jewelers in ITA No. 253/Viz/2020 on identical facts held that when cash receipts represent the sales which the assessee has offered for taxation ....