TaxTMI 
TaxTMI 
2025 (3) TMI 1940
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...., Delhi- 18/10330/2019-20 arising out of the appeal before it against the order dated 21.12.2019 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the ACIT, Circle 52(1), Delhi (hereinafter referred to as the Ld. AO). 2. Heard and perused the record. The facts in brief are that the assessee filed return of income declaring total income of Rs. 48,43,150/-. The case of the assessee was taken up for scrutiny and mandatory notices were issued. The assessee is a proprietor and is engaged in the business of running sweets/namkeen/Halwai shop and a restaurant under the name "Nathu's Sweets." As for the year under consideration the assessee has shown income from business or profession and other sources. During ....
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.... 4212380 4619506 From the above table following abnormal trends is being observed: * Cash sales in October 2015 was Rs. 8707370 whereas cash sales in October 2016 was Rs. 26993600. There is an abnormal increase in cash sales by 210% that too on a higher base of sales of Rs. 8707370 in October 2015. It is pertinent to mention here that your total sales in FY 2015-16 was Rs. 116582851 and in FY 2016-17 was Rs. 136794517 which means that your total sales have increased in relevant AY by 17% over the preceding A Y. * Opening cash in hand for November 2015 was Rs. 1663335 however opening cash in hand for November 2016 was Rs. 19020463. There is an abnormal increase in opening cash in hand by 1043%. * Cash s....
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....mention here that your total sales in FY 2015-16 was Rs. 116582851 and in FY 2016-17 was Rs. 136794517 which means that your total sales have increased in relevant AY by 17% over the preceding AY. * Opening cash in hand for November 2015 was Rs. 1663335 however opening cash in hand for November 2016 was Rs. 19020463. There is an abnormal increase in opening cash in hand by 1043%. * Cash sales in September 2015 was Rs. 9090642 whereas cash sales in October 2015 was Rs. 8707370 which means a decline of 4.2%. Cash sales in September 2016 was Rs. 7534595 and cash sales in October 2016 was Rs. 26993600 which means an increase of 258%. These data points out that cash sales in October 2016 have been manipulated to create....
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....essment proceedings." 5. The ld. AR has re-asserted the averments of the case of the assessee supplementing it with references made on the basis of the paper book and filing written submissions for the same. The ld. AR for the assessee had emphasized that disbelieving the whole of the closing cash in hand as on 08.11.2016, without rejecting the books of account, was absolutely unjustified and illegal. The ld. AR had placed reliance upon the following judgments. (i) Forum Sales Pvt.Ltd., ITA 862/2019 & ITA 863/2019- Delhi HC (ii) Hirapanna Jewellers, 196 ITR (Tribj 2024-ITAT Vishakhapatnam (iii) Amantpur Kalpana 130 taxmann.com 141-ITAT Bangalore (iv) Agsom Global Pvt.Ltd., 441 ITR 550- Delhi HC ....
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....ofit rate has substantially gone up from 1.98% to 3.54%. The tax auditor has not pointed out any discrepancy/defect/short coming in the books of account maintained by the assessee which were examined by them. 7. The total amount received towards sales during FY 2015-16 was Rs. 130234507/- (inclusive of VAT amount of Rs. 13651656/-), out of which the total cash received was Rs. 95769911/-. The percentage of cash sales/total sales is worked out at 73.53%. 7.1 The total amount received towards sales during FY 2016-17 was Rs. 147813394/- (inclusive of VAT amount of Rs. 11018677/-), out of which the total cash received was Rs. 99780230/-. The percentage of cash sales/total sales is worked out at 67.50%. 7.2 The total amount received tow....
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....p the figure of Rs. 16613755/- which was nothing but the closing cash in hand as on 08.11.2016 (PB:157) and treated the same as unexplained cash credit in terms of section 68 of the Act, without rejecting the books of account, and same is not sustainable. 11. Then we find that the learned AO had recorded that out of total deposited amount of Rs. 2,25,40,000/- the assessee had deposited Rs. 60.00,000/- in new currencies and rest in specified bank notes (SBN). As claimed by assessee Rs. 1,65,40,000/- was cash in hand available with the assessee on 08th Nov 2016 which was subsequently deposited in above mentioned bank accounts during demonetization period. This is sufficient to establish that assessee was generating sufficient cash from day....