9911796707
TMI Blog2022 (8) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... see filed its Return of Income on 07.07.2017 declaring total income of Rs.4,43,090/-. The case of the assessee was selected for scrutiny assessment and on the ground "PAN Applied for after the date of announcement of demonetization and large cash deposits during demonetization period." 2.1. Thus the assessee was issued with142(1) notices on various dates and the assessee was requested to explain cash deposit of Rs. 12,13,500/- in bank account maintained with Punjab National Bank. 2.2 Vide letter dated 06.11.2019, the assessee replied that it is engaged in retail business of readymade garments and filed the return of income u/s. 44AD of the Act. Thus the assessee is not supposed to maintain books of accounts, since the Return is filed as per the provisions of Section 44Ad of the Act. The assessee also explained: (i) Opening cash in hand as on 01.04.2015 Rs. 5,98,200/- (ii) Closing cash in hand as on 31.03.2016 Rs. 10,23,700/- (iii) Closing cash in hand as on 31.03.2017 Rs. 4,277/- (iv) Closing cash in hand as at midnight 08/11/2016 Rs.12,04,908/- (demonetization announcement date) 2.3. The assessee further explained that the cash deposit is from the retail business. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus the assessee filed return of income under 44AD of the Act for the earlier assessment years only to justify his cash deposit of Rs. 12,13,500/- and as such to evade the legitimate statutory tax incident, which otherwise he is liable to pay in accidence with the Income Tax Act. 4. Aggrieved against the assessment order, the assessee filed an appeal before the Ld.(CITA). The case was listed for hearing on five dates i.e. on 05.04.2021, 04.06.2021, 20.07.2021, 17.08.2021 and 24.11.2021. In the absence of any fresh details before the ld. CIT(A) and going through the assessment order the addition made of Rs. 12,13,500/- u/s. 69A r.w.s. 115BBE was confirmed and dismissed the appeal of the assessee by observing as follows: 5.1. There is a well known dictum of law "VIGILANTIBUS, NO DORMENTIBUS, JURA SUBVENIUNT" which means law will help only those who are vigilant. Law will not assist those who, are careless of his/her right. In order to claim one's right, s/he must be watchful of his/her right. Only those persons, who are watchful and careful of using his/her rights, are entitled to the benefits of law. Law confers rights on persons who are vigilant of their rights. 5. Aggriev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxation" the assessee is not required to maintain proper books of accounts. When the assessee was having opening and cash balance of Rs. 10,23,700/- and business receipts of Rs. 7,91,017/- during the Assessment Year 2017-18 which is sufficient cash balance available with the assessee, the same is deposited in cash of Rs. 12,13,500/- being high denomination notes. The assessing officer is not correcting adding it u/s. 69A r.w.s. 115BBE of the Act. Therefore the addition is liable to be deleted and consequently the charging of interest u/s. 234A, 234B & 234C and initiation of penalty u/s. 271(1)(c) are liable to be deleted. 6. Per contra the ld. D.R. appearing for the Revenue taken up to Para 8 and 9 of the assessment order explaining the demonetization period and the deposits of specified bank notes: 8. It is pertinent to mention here that the Government of India, vide notification dated 08/11/2016 had demonetized the Specified Bank Notes (SBN) of denomination of Rs.500 and Rs.1000. This was the step taken to clean black money from the economic system. The period of around 50 days was given to deposit SBN in banks. This period lasted from 09/11/2016 to 31/12/2016. Holders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come field by the assessee for the Assessment Year 2015-16, the gross turnover has submitted by the assessee itself is Rs. 9,10,500/- As per Section 139A(1)(ii) of the Act which mandates and assessee to have permanent account number whose total turnover exceeds or likely to exceed five lakh rupees in any previous year. But the assessee in this case has obtained the PAN Number only on 10.11.2016 and filed its return for the Assessment Years 2015-16, 2016-17 on 25.11.2016 during the demonetization period. Further the assessee has not furnished any evidence in support of its Readymade Garments business being carried out by him in earlier years. Therefore the cash deposit of Rs. 12,13,500/- during demonetization out of income declared u/s. 44AD of the Act cannot be accepted. 7. We have given our thoughtful consideration and perused the materials available on record. The first ground of appeal by the assessee namely sufficient opportunity of hearing especially during the Covid-19 Pandemic period was not given to the assessee, which is violation of principles of natural justice. It is seen from the appellate order though five opportunities were given by the NFAC from April, 2021 to Nove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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