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TMI Blog2022 (7) TMI 1110X X X X Extracts X X X X X X X X Extracts X X X X ..... 16 to 08/11/2016, there was cash deposits which fact is apparent from the order of CIT(A) where he has noted this fact of having deposited such amount in cash during these dates. If in the same year, cash can be accepted to be belonging to the business and has been accepted to be part of business receipts, there cannot be reason that a sum in the same year should not be accepted as income from the same business. Moreover, we find that in the immediate preceding year, the assessee had declared total receipts of Rs.62 lacs and all of the receipts were in cash and AO during assessment proceedings had accepted the net income declared by assessee. A copy of assessment order dated 17/12/2018 is placed. The fact that in the preceding year all r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accumulated past savings. 2. The Ld. C.I.T. (Appeals) failed to appreciate that Assessee has offered income u/s 44AD being Gross Receiving Rs.67,69,491/- and has shown Income Rs. 7,50,000/- which has accepted by Ld. A.O. However, Ld. A.O. again made the addition of Rs.10,24,000/- u/s 69A r.w.s. 115 BBE of I.T. Act being cash deposited during demonetization period without appreciating that Cash was deposited out of business receiving, Agriculture activities and accumulated past savings available as cash in hand as on date of demonetization. Thus, no addition can be made in the present sets of facts and circumstances. 3. The addition upheld is highly excessive, contrary to the facts, law and principle of natural justice and wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the returns are being filed under the provisions of section 44AD of the Act. It was submitted that during the year under consideration, the assessee had deposited an amount of Rs.12,24,000/- in cash in three different bank accounts which she had received on account of agricultural income and on account of income from transport business which generally happens in cash only. It was submitted that in total an amount of Rs.67,69,000/- including cash, was deposited in the bank accounts on which the assessee declared a net income of Rs.7,50,000/- u/s 44AD of the Act. Learned counsel for the assessee submitted that the Assessing Officer held that the cash available with the assessee for deposit in the bank accounts was not explainable and fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal filed by the assessee may be allowed. 4. Learned D. R., on the other hand, heavily placed reliance on the orders of the authorities below and submitted that the cash deposits were made in the three bank accounts, maintained by the assessee, during the demonetization period itself and the amount involved in huge and therefore, it cannot be said that the said amount was out of business receipts and rather it can safely be concluded that the said amount was past undeclared income of the assessee. 5. Learned counsel for the assessee, in his rejoinder, submitted that besides the income declared by the assessee on presumptive basis, the husband of the assessee also was a regular income tax payee and in this respect our attent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eposited such amount in cash during these dates. If in the same year, cash of Rs.27,79,000/- can be accepted to be belonging to the business and has been accepted to be part of business receipts, there cannot be reason that a sum of Rs.10,24,000/- in the same year should not be accepted as income from the same business. Moreover, I find that in the immediate preceding year, the assessee had declared total receipts of Rs.62 lacs and all of the receipts were in cash and Assessing Officer during assessment proceedings had accepted the net income declared by assessee. A copy of assessment order dated 17/12/2018 is placed in paper book page 35. The fact that in the preceding year all receipts were in cash is verifiable from the copy of reply fil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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