2025 (3) TMI 1978

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....dual, running business under the name and style of Vara Sidhi Vinayaka Enterprises, is engaged in the business of trading in mobile phones and accessories. The assessee has not filed his return of income for the A.Y.2017-18. Basing on the information with the department that the assessee has deposited cash into his bank account during the demonetization period, notice u/s 142(1) of the Income Tax Act, 1961 ("the Act") was issued to the assessee on 14.03.2018, calling for return of income. The assessee has not filed return of income, in response to notice u/s 142(1) of the Act, hence, proceedings u/s 144 of the Act have been initiated and notice u/s 142(1) of the Act dated 17.12.2019 was issued and duly served on the assessee. In response, t....

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....016, contrary to Notifications and guidelines issued by RBI and therefore, the explanation of the assessee with regard to source for cash deposited in SBNs during the demonetization period cannot be accepted and therefore, rejected the explanation and sustained the addition towards cash deposits u/s 69A of the Act. 4. Aggrieved by the order of the Ld.CIT(A), the assessee is now in appeal before the Tribunal. 5. Shri K.Siva Rama Kumar, learned counsel for the assessee submitted that the Ld.CIT(A) erred in sustaining the additions made by the AO towards cash deposited in SBNs during the demonetization period u/s 69A of the Act, without appreciating the fact that once the source for cash deposit is explained out of business income, then,....

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....estricting to deal with SBNs by a common man, other than for specified purpose and specified category, but the fact remains that the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 and followed by the Specified Bank Notes (Cessation of Liabilities) Act, 2017 allowed acceptance or dealing with SBNs upto 31.12.2016. The assessee in the business of trading in mobile phones and accessories was under bonafide belief that there is no restriction for dealing with SBNs after 08.11.2016 and upto 30.12.2016, more particularly when the Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 and followed by the Specified Bank Notes (Cessation of Liabilities) Act, 2017 does not put any restriction in dealing with SBNs upto 31.12.....