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TMI Blog2021 (12) TMI 599X X X X Extracts X X X X X X X X Extracts X X X X ..... td. [ 1994 (1) TMI 18 - CALCUTTA HIGH COURT] on identical facts took the view that when cash sales are admitted and income from sales are declared as income, wherein the Hon'ble Tribunal found that the assessee had sufficient cash in hand in the books of account of the assessee, that there was no reason to treat the cash deposits as income from undisclosed sources. When cash receipts represent the sales which the assessee has offered for taxation and when trading account shows sufficient stock to effect the sales and when no defects are pointed out in the books of account, it was held that when Assessee already admitted the sales as revenue receipt, there is no case for making the addition u/s 68 or tax the same u/s 115BBE - See M/S HIRAPANNA JEWELLERS AND (VICE-VERSA) [ 2021 (5) TMI 447 - ITAT VISAKHAPATNAM] - thus the addition made is not sustainable and the same is directed to be deleted. Appeal of the assessee is allowed. - ITA No.541/Bang/2021 - - - Dated:- 13-12-2021 - Shri N.V. Vasudevan, Vice President For the Assessee : Shri. Raghavendra Chakravarthy, CA For the Revenue : Shri. Ganesh R. Ghale, Standing Counsel for the Department ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19/11/2016 1,25,000/- 1,000/- 1,24,000/- Total 11,50,000/- 9,35,500/- 2,14,500/- Axis bank, Gangavathi: Date Total amount deposited Total amount of SBNs Total amount of Other denominations 18/11/2016 2,25,000/- 06-12-2016 50,000/- 19-12-2016 25,000/- 2,500/- 2,97,500/- Total 3,00,000/- 2,500/- 2,97,500/- 3. The AO found that as on 08.11.2016, the closing balance in the cash book was ₹ 4,90,673/-. The total of cash deposit of Specified Bank Notes (SBN) by the Assessee was ₹ 9,40,500. After reducing the closing cash balance of ₹ 4,90,673 from the total cash deposited in the Bank accounts of ₹ 14, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pulsory audit under the provisions of section 44AB of the Act. The Assessee is also filing its VAT Returns in connection to the purchases and sales made by it to the concerned authority. It was submitted that the impugned addition made is nothing but the sales made by the Assessee. The Assessee relied on decision of ITAT Indore Bench in the case of DEWAS SOYA LTD, UJJAIN v/s Income Tax (Appeal No 336/Ind/2012 wherein on identical facts of the case it was held that the claim of the assessee that such addition resulted into double taxation of the same income in the same year because on one hand cost of the sales has been taxed (after deducting gross profit from same price ultimately credited to profit loss account) and on the other hand amounts received from above parties has also been added u/s. 68 of the Act. 5. The CIT(A) however did not accept the contention of the assessee. He held that once the ₹ 500 and ₹ 1000 notes are declared as not valid legal tender on 09.11.2016, the assessee cannot accept cash payments after 09.11.2016 that are demonetized and doing so was patently illegal. The CIT(A) therefore held that the plea of the asessee cannot be accepted and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court has confirmed the order of the Tribunal while deleting the penalty; the Hon'ble High Court of Calcutta held as under: 8. The Tribunal was of the view that the assessee had sufficient cash in hand. In the books of account of the assessee, cash balance was usually more than ₹ 81,000/-. There is no reason to treat this amount as income from undisclosed sources. It is not a fit case for treating the amount of ₹ 81,000/- as concealed income of the assessee and consequently imposition of penalty was also not justified in this case. 7. Further reliance is placed on the decision of the Hon'ble Vishakapatnam Tribunal in the case of ACIT Vs. Hirapanna Jewelers in ITA No. 253/Viz/2020 wherein, the Hon'ble Tribunal while considering the issue of implication of Sec. 68 of the Act during demonetization held as under: 9. In view of the foregoing discussion and taking into consideration of all the facts and the circumstances of the case, we have no hesitation to hold that the cash receipts represent the sales which the assessee has rightly offered for taxation. We have gone through the trading account and find that there was sufficient stock to effec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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