2024 (7) TMI 1807

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....tion on 19.9.2017, showing total income of Rs. 56,04,230/-, which was processed under section 143(1) of the Act by the CPC, Bangalore. Thereafter, the case of the assessee was selected for scrutiny through CASS on the basis that a total sum of Rs. 84,00,000/- were found to have been deposited in the bank accounts of the assessee during the demonetization period. The Assessing Officer completed the assessment under section 143(3) of the Act on a total income of Rs.1,19,47,230/- by making an addition of Rs. 63,43,000/- under section 68 of the Act, treating the cash deposit in the bank account of the assessee as undisclosed income of the assessee. 3. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before th....

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....ity wherein the AO has not found any defect in the books of the appellant Co. only on preponderance of probability and in not appreciating that the sales for the year have increased substantially from 5.61 crore to 9.76 crore which has not been taken into consideration and thus the addition so confirmed wholly on notions, conjectures and surmises being devoid of any merit may kindly be ordered to be deleted. 4. That the Ld. CIT (A)'s further grossly erred on facts and in law in conforming the addition u/s 69A instead of that made u/s 68 by the AO by applying the provisions of sec. 292 B of the Act whereas in fact it is neither a mistake, defect or omission by the AO but a conscious decision to apply the provisions of sec. 68 of....

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....thout appreciating that provisions of Section 69A were not applicable in the facts of the case and, therefore, provisions of Section 115BBE of the Act could not be invoked. 8. That the Ld. CIT (A)'s erred in rejecting the ground relating to applicability of provisions of Section 115BBE of the I.T. Act as substituted by the Taxation Laws (Second Amendment) Act 2016 which was passed on 15-12-2016 as such cannot be applied on the transactions which took place prior to the coming into existence of these provisions. 4. At the time of hearing before us, the ld. counsel for the assessee submitted that the ld. CIT(A) erred in sustaining the addition of Rs. 5,43,000/- on ad hoc basis. The ld. counsel for the assessee further submitte....