2025 (4) TMI 2187

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iness. It had filed its return of income on 30.10.2017 declaring total income of Rs. 60,75,230/-. This case was selected for scrutiny under CASS for complete scrutiny. The reason for selection of case for scrutiny is "Large Value Cash deposited during demonetisation". Accordingly, a notices were issued to the assessee and assessee submitted reply which is as under: "We are wholesale pharmaceutical distributors in Davangere covering most part of Karnataka. We are a partnership firm consisting of two partners. We have gross profit of Rs. 3,84,17,185 on sales of Rs. 55,54,38,934/- which works out to 6.92% as compared to 6.83% in earlier year. There is increase in Sales by Rs. 9,05,34,955/- during the year which works out to 19.47% as ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....onetised cash deposit :   4153000.00 4. After considering the detailed written submissions, the AO added under section 68 of the Act to the tune of Rs. 8,40,735/- against which assessee filed appeal before the CIT(A). The learned CIT(A) also dismissed appeal of the assessee. 5. Aggrieved from the Order of the learned CIT(A), assessee filed appeal before the Tribunal. 6. None was present on behalf of the assessee . Assessee has filed written submissions along with appeal set which is as under: Summary of Analysis: Cash Deposit and Sales Analysis: FY 2015-16: Pre-Demonetisation Period (1.4.15 to 8.11.15): * Cash Deposited: 219,88,32,160 * Sales: 229,11,90,023 *....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mitted that the very purpose for selection of this case for scrutiny is huge deposit of cash during demonetization period. Both the lower authorities have considered the written submissions filed by the assessee before them and observed that the addition made under 68 of the Act is correct. 8. Considering the submissions of the learned DR and material available in the appeal set, we noted that the turnover reported from 01.04.2016 to 30.12.2016 is Rs. 45,19,91,449/- and the cash deposit during the demonetization period from 09.11.2016 to 30.12.2016 is Rs. 3,73,94,564/-. Assessee is in the wholesale business in pharmaceuticals sector and central government had allowed to transact in the demonetized currency to the pharmaceutical sectors d....