2025 (3) TMI 2112

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....Ld CIT(A) as also the further enhancement of Rs 70,53,500/- by the Ld CIT(A). Brief factual matrix of the case is that the assessee was found to deposited in cash, amount of Rs 2,70,00,500/- and Rs 1,32,53,000/- in its bank accounts with kotakmahindra bank& Federal Bank, during the demonetization period. The assessee, did not respond to statutory notices of Ld AO to explain the cash deposits leading to passing of exparte by him .As per para 4 of order of Ld CIT(A) assessee did not respond to his notices as well. Noting mistakes in amount of addition qua deposits in bank accounts, Ld CIT(A) made further enhancement of Rs 70,53,500/-. 3. At the outset Ld council for the assessee submitted that it had admittedly made non compliance before l....

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.....11.2016 to 30.12.2016, hence the erstwhile rate of tax 30% only is applicable. But the contention of the revenue is that the amendment was with effect from 01.04.2017 and hence the same is applicable for the financial year 2016-2017 and the assessment year 2017-2018. Further the amendment to section 115BBE is directly related to demonetization which would be evident from objects and reasons for such amendment. In order to consider the same, the objects and reasons of Taxation Laws (Second Amendment) Bill 2016 is extracted hereunder: Press Information Bureau Government of India Ministry of Finance 28-November-2016 15:56 IST Taxation Laws (Second Amendment) Bill, 2016 introduced in Lok Sabha; A scheme namely, 'Taxation and Investmen....

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....ely comes into the formal economy. In this backdrop, an alternative Scheme namely, 'Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016' (PMGKY) has been proposed in the Bill. The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called 'Pradhan Mantri Garib Kalyan Cess' @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the 'Pradhan Mantri Garib Kalyan Deposit Scheme, 2016'. This amount is proposed to be utilised for the....

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....r to the said cut-off date. And for prior transaction the revenue is empowered to impose only 30% rate of tax....". 5. Thus, Hon'ble high court has held that section 292BB would be applicable for transactions undertaken wef 1/4/2017 and not of earlier period. In the present case undisputedly transaction were undertaken in FY 2016-17 and hence revenue's case is hit by the amendment. As regards the issue of unexplained cash deposit and the relation with additional evidences now filed, admitting the same, we are of the considered view that the additional evidences filed by the assessee must by examined by the Ld AO. Accordingly, we set aside the order of lower authorities and direct the Ld AO to re-adjudicate the matter, in the light of imp....