TaxTMI 
TaxTMI 
2024 (8) TMI 1771
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....the previous year relevant to the assessment year 2017-18, is concerned, the assessee-company filed its return declaring income of Rs.56,79,600. The case of the assessee was compulsorily selected for scrutiny (CASS) vide notice dated 24.09.2018 issued under section 143(2) of the Act and the main reason for selection was 'Large value cash deposit during demonetization period'. During the course of assessment proceedings, various notices under section 142(1) of the Act were issued by the assessing officer which were duly replied by the assessee-company. However, in the impugned assessment completed vide order dated 29.12.2019 passed under section 143(3) of the Act, income of the assessee has been assessed at Rs. 1,78,33,367 as against income of Rs.56,70,600 declared by the assessee. While assessing the income, the assessing officer made addition of Rs. 1,21,53,767 under section 68 of the Act alleging that the same represents the undisclosed income of the assessee-company. 2.1 On appeal, vide order dated 12.02.2024, the Ld. CIT(A) had deleted the sole addition made by the assessing officer. Against the aforesaid order of the CIT(A), the department has now filed an appeal be....
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....gienic Products Pvt. Ltd. vs. ACIT: ITA No.1455 of 2021 (Del ITAT)[enclosed as Annexure-2] ● HazoorilalJewellers Pvt Ltd. vs. ACIT: ITA No. 195 of 2021 (Del. ITAT) ● Parish Agarwal vs. ITO: ITA No. 272 of 2023 (Del. ITAT) ● Jagson International Ltd [TS-478-ITAT-2023(DEL)] ● Navkaar Traders v. ITO [ITA No. 194/Del./2020] (Del. ITAT) ● DCIT vs. Bawa Jewellers Pvt. Ltd .: ITA No.352 of 2021 (Del. ITAT) ● ITO vs. Aditi Gems N Jewellery: ITA No. 3748 of 2023 (Del. ITAT) ● Jet Freight Logistics Limited: [TS-762-ITAT- 2022(Mum)] (Mum. ITAT) 3.3 Further, it is contended that it is not open to the Revenue to have simply doubted that cash deposited was not out of the cash sales made by the assessee and duly recorded in the books of account etc., but from unaccounted sources, without any cogent reasons. Reliance was placed on the decision in CIT v. Paradise Holidays 325 ITR 13 (Del. HC), Ashoke Refractories (P.) Ltd. vs CIT: 279 ITR 457 (Cal HC)] 3.4 Then it is submitted that section 68 of the Act is not applicable to business receipts recorded as sales. It is also submitted that rec....
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....1.11.2016 to 08.11.2016; h) Reconciliation of sales and purchases with DVAT returns for FY 2016-17; i) Details of month-wise and location-wise cash sales for the period 01.11.2016 to 08.11.2016; j) Details of N.P. and G.P. ratio for the last 3 years; k) Details of amount deposited bank-wise/branch wise during the demonetization period; l) Month-wise stock statement for the AY 2016-17 and 2017-18; m) Copy of bank statements of various accounts for the period 01.11.2016 to 31.12.2016; 4.2 The matter on record shows that in the FY 2016-17, the total revenue from operations were Rs.142,49,50,251 vis-a-vis the revenue of Rs.126,61,03,622 in the FY 2015-16. Out of the total sales made by the assessee-company, the cash sales in the FY 2016-17 were Rs.67,42,34,993 vis-a-vis the cash sales in the FY 2015-16 of Rs.70,49,13,073. Hence, cash sales is an integral part of the business model of the assessee-company. It is also established that cash sales froms substantial percentage of the total sales. 4.3 The orders depicts that in the month of October 2016, total sales of Rs.21,43,40,225 were made by the assessee-company out of which c....
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....al submission that the Appellant has duly explained the reasons for high cash sales in October 2016 being dhanteras and Diwali falling on 28th and 30thOctober. The Appellant has also explained the cash so generated on account of cash sales could not be deposited being bank holiday. The Appellant has also submitted before the AO that it is not that the Appellant has not been able to reach similar sales figures as has been done in October 2016. The Appellant has cited few months where cash sales are nearing the cash sales achieved in October 2016. Thus, there is nothing very unusual about high cash sales in October 2016 and also high cash balance in the same month. In this regard, I find that the AO has not been able to rebut any of the above factual submissions made by the Appellant. I further find that the in his statement recorded u/s 131 of the Act in the course of assessment proceedings, the Director of the Appellant Company has replied to all the queries raised by the AO. The AO has not been able to find any flaw in the replies given by the Appellant. And yet, without negating the factual submissions of the Appellant, the AO has simply concluded that the high cash balance in Oc....
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....ure and gravity of an issue necessarily determines the manner of attaining reasonable satisfaction of the truth of the issue. In civil cases this, normally, is the standard of proof to apply for finding whether the burden of proof is discharged. The normal rule which governs civil proceedings is that a fact can be said to be established if it is proved by a preponderance of probabilities and not the one relating to beyond reasonable doubt. In this case, it is evident from the facts that preponderance of probability is working in favour of the Appellant. The Appellant has been able to substantiate that the cash deposits made during the demonetisation period is on account of cash sales generated in the preceding period. These facts have already been discussed above. Thus, in view of facts of the case and discussions made hereinabove, I am of the considered opinion that the Appellant has duly explained the source of cash deposits as being out of cash sales. Therefore, the AO has erred in invoking provisions of section 68 of the Act and making the impugned addition of Rs 1,21,53,767/-. The said addition is, therefore, directed to be deleted. Grounds are, thus, allowed....
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.....37,700 48 11.62,94,355.42 9 37 81.852 00 7.80,55.171 76 17,18,37,023.76; 1%) December 3,76,72,965 00 4.85.01.295.11 8.61.74 361 1! 1.36.16,836 00 6,72,36,720 98 8.08.53.556 98 4.99.65,331 00 4.32.20.751 94 9.31,86,082 94 ¥1 January 3,42.90,580 00 5.05.03.778 95 8,47,44,367.95 2,45.77.914 00 6.40.12.704 82 8,85.90,618 32 5,13,35,656 00 4.51,96.975 58 9.65,32.631.58 XII February 3,51,85,406 00 5.124,62.027 07 8,50,47,433 07 3,13,70,084 00 4.96,26.062 68 8.09.96.146.68 4,82.21,420-00 3.59.01 464 23 8,41,22,884 23 VIla March 4.41.99.229 401 6,32,97,991 24 10.74.97.220 29 4,35,26,322 00 6,63,90,509 43 10.99.16.831 43 5,21,33,425 00 4.37.32.944 65 9.58.66,369 65 xili) Tetal Sale 55.57.59,974.59 76.31.19,9$1.50 1,32.18,79,936.09 67,42.34,993.00 75,07,15.258.83 1.42,49,50,251,83 70,49,33,073.00 $6,11,70,549.73 1,26,61,03,622.73 Document 2Sr. No. Months Assessment Year Assessment Year Assessment Year 2018-19 2017-18 2016-17 Cash Sale Cash Deposit Cash Sale Cash Deposit Cash Sale Cash Deposit i) April 6,68,15,840.59 6,99,36,139.00 9,52.88,643.00 9,80,12,129.00 7,27,46,549.00 7,19,62,800.00 ii) May 5.76,20,423.00 6,10,53,452.00 8.90.23.086.00 9.06,79,765.00 8,51,74,746.0....