TaxTMI 
TaxTMI 
2026 (10) TMI 585
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....assessment order u/s 143(3) of the Income Tax Act, 1961 without considering the replies filed by the appellant before the Ld. AO. ii. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming the action of Ld. AO in passing assessment order u/s 143(3) of the Act, without granting minimum period of 7 working days to submit response to show cause notice and thus the order passed u/s 143(3) is bad in law. iii. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming the action of Ld. AO of adding Rs. 55,25,000/- being cash deposits from cash sales as unexplained cash credits under section 68 of the Income Tax Act, 1961. iv. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming addition of Rs. 55,25,000/- u/s 68 of Income Tax Act,1961 without considering the fact that the appellant has made cash sales of Rs. 6,29,40,485/- and the same has been offered as sales during the year and thus the addition of cash deposits would lead to double taxation which is not justified. v. On the facts and circumstances of the case and law, the Ld. CIT(A) failed to considered tha....
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....source of cash deposit which he has failed to do." Accordingly, the Assessing Officer treated the entire amount of Rs. 57,25,000/- as unexplained cash credit under section 68 read with section 115BBE of the Act and completed the assessment under section 143(3) vide order dated 16.12.2019 determining total income at Rs. 61,36,940/-. Penalty proceedings under section 271AAC were also initiated separately. 4.2 Aggrieved by the aforesaid assessment order, the assessee preferred appeal before the learned CIT(A). Before the learned CIT(A), the assessee submitted that the cash deposits represented business receipts arising from cash sales made in the ordinary course of business activities carried out through proprietary concerns M/s. SKS Enterprises and M/s. Omega Marketing. It was submitted that the assessee had disclosed total turnover of approximately Rs. 23,75,21,243/- during the year out of which cash sales amounted to Rs. 6,29,40,485/-. According to the assessee, cash received from sales was deposited into bank accounts and subsequently utilized for making payments to suppliers and vendors. The assessee further submitted before the learned CIT(A) that such practice of depositing ....
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....ng response tab placed on record, the learned AR submitted that the assessee had uploaded various details and supporting documents through the income tax e-filing portal on 12.12.2019 in response to the show cause notice issued under section 143(3) of the Act. It was submitted that the details uploaded before the Assessing Officer included tax audit report along with schedules, bank statements relating to Account No. 006114800000107, bank account details of M/s. SKS Enterprises bearing Account No. 002612100051341, bank account details of M/s. Omega Marketing bearing Account No. 002612100051077 and bank account details relating to Account No. 002610100081344. 6.1 The learned AR further submitted that the assessee had specifically informed the Assessing Officer through the e-proceeding portal that balance submissions would be uploaded within two to three days, however, the Assessing Officer proceeded to complete the assessment without considering the material already placed on record. The learned AR contended that the Assessing Officer ignored the documentary evidences and mechanically proceeded to make the addition merely on the allegation that no explanation had been furnished. ....
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....counts on 12.12.2019 in response to the show cause notice issued by the Assessing Officer. It further appears that the assessee had also informed the Assessing Officer that balance submissions would be uploaded within two to three days. 7.1 We further note that the consistent stand of the assessee before the lower authorities has been that the impugned cash deposits represented realisation of cash sales duly recorded in the books of account and already offered to tax as part of disclosed turnover. However, from the assessment order, we find that the Assessing Officer has not carried out any verification of the books of account, bank statements, turnover disclosed by the assessee or the claim that the cash deposits represented realization of cash sales. The addition appears to have been made primarily on account of alleged non-compliance. 7.2 We further observe that though the learned CIT(A) has granted relief of Rs. 2,00,000/-, there is no detailed examination of the evidences and submissions now pointed out before us by the learned AR, particularly the responses uploaded on the e-proceeding portal and the claim that the deposits were duly supported by books of account and di....