9911796707
TMI Blog2022 (8) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee could not demonstrate the reasons for non appearance on the hearing dates by NFAC before deciding the appeal. So we do not find any merit in the grounds raised by the assessee. The same is hereby rejected. Addition u/s. 69A r.w.s. 115BBE - unexplained cash deposits during demonetization out of income declared u/s. 44AD - HELD THAT:- Assessee has not obtained the PAN Number as required u/s. 139(1)(ii) of the Act read with Rule 114 of the Income Tax Rules. The Ld. Counsel has not produce any details for the delay in obtaining PAN Number on 10.11.2016 even though the assessee s return of income field for the Assessment Year 2015-16 wherein the gross turnover as admitted by the assessee is Rs. 9,10,500/- which is violation of Section 139A(1)(ii) - assessee though placed before us, the Return of Income filed by the assessee for the subsequent Assessment years namely 2019-20 2020-21. The above returns also resulting in Nil assessable income and readymade business turnover assessable under 44AD @ 8% is Rs. 1,80,047/- for the Assessment Year 2010-20 and Rs. 49,693/- for the Assessment year 2020-21. Further as it can be seen that the returns for the Assessment Years 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 assessee was issued with one more notice u/s. 142(1) calling upon him to explain though the assessee filed Income Tax Returns for the Assessment Year 2015-16, 2016-17 on 25.11.2016 to the PAN Number was obtained only during the demonetization period dated 10.11.2016. As per Section 139A of the Act read with Rule 114 the assessee is required obtained the PAN where an assessee is carrying on any business or profession whose total sales, turnover or gross receipts are likely to exceeds Rs. 5 lakhs in any previous year should obtain to PAN number. However, as per the return filed by the assessee for the Assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. The learned CIT(A) has erred in law and on facts in not giving sufficient opportunity of hearing, especially during the COVID-19 pandemic which is in violation of the principles of natural justice. 2. The learned CIT(A) has erred in law and on facts in confirming the action of the AO of rejecting computation of profit u/s.44AD of the Act. 3. The learned CIT(A) has erred in law and on facts in confirming the addition of Rs.12,13,500/- r/s.69A r.v.s.HSBBE of the Act. 4. The le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itiation 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 these SBN were allowed to deposit the same in their bank accounts. Operation clean money (OCM) was initiated in this regard to ascertain whether the entire cash deposits made by them are declared in their income tax returns and also to trace and establish the ultimate beneficiary of the transaction. Under this operation, notice under section 143(2) of the Income-Tax Act, 1961 was issued to assessee whose cash deposits are inconsistent with the income declared in their Income Tax Returns and assesee's case is one of the flagged cases of the system. 9. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 November, 2021. The assessee does not dispute the above hearing dates, however not filed any submissions before NFAC and now claiming before us violation of principles of natural justice. The assessee could not produce before us any valid reasons for non appearance of the assessee, before the NFAC which was only National Faceless Appellate proceeding. Thus the NFAC is correct in applying the legal maxim VIGILANTIBUS, NON. DORMIENTIBUS, JURA SUBVENIUNT which means, law will help only those who are vigilant. Law will not assist those who are careless of hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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