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TMI Blog2022 (8) TMI 1033X X X X Extracts X X X X X X X X Extracts X X X X ..... the contention of AO as the assessee had disclosed abrupt jump in sales during the months of October and November. While confirming the part addition the CIT(A) has not given any specific explanation for confirming the part addition. Therefore, the confirmation of part addition is based only on surmises and is arbitrary in nature and therefore, is liable to be deleted. Assessee appeal allowed. - I.T.A. No. 352/Lkw/2020 - - - Dated:- 22-8-2022 - SHRI A. D. JAIN , VICE PRESIDENT AND SHRI T. S. KAPOOR , ACCOUNTANT MEMBER Appellant by : Shri P. K. Kapoor , C. A. Respondent by : Shri Harish Gidwani , D. R. ORDER PER T. S. KAPOOR , A. M. This is an appeal filed by the assessee against the order of learned CIT(A), dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held the same to be unexplained and made the addition u/s 69A of the Act. Learned counsel for the assessee submitted that before the learned CIT(A), detailed submissions were made and on the basis of submissions the learned CIT(A) held that the source of above cash deposit was sales as submitted by the assessee and learned CIT(A) further held that when the Assessing Officer has accepted the claim of sales made by him then the action of the Assessing Officer in rejecting the explanation of the assessee regarding source of these cash deposits is unjustified as the source are cash sales. Learned counsel for the assessee argued that learned CIT(A) accepted the contention of the assessee and therefore, deleted the substantial addition of Rs.40 l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... character of old bank notes in the denomination of Rs.500/- and Rs.1000/- w.e.f. 8th November 2016 through specific bank notes (cessation of liabilities) Act, 2017 and specified bank notes (deposit of confiscated notes) Rules, 2017. The legal tender character of the bank notes in denomination of Rs.500/- and Rs.1000/- issued by the Reserve Bank of India till November 8, 2016 (specified bank notes) were withdrawn. The sources of deposits of old currency notes (SBNs) were not explained. It is apparently clear that the cash deposits made in the bank accounts during financial year 2016- 17 relevant to ASSESSMENT YEAR 2017-18, especially during demonetization period, are unexplained and from undisclosed sources, the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on period are unexplained u/s 69A on the ground that the appellant has deposited cash in his banks on 26/10/2016 and 07/11/2016 in one bank account and on 14/10/2016 and 03/11/2016 in another bank account and thus accumulation of cash explanation, as submitted by the appellant before the AO, was rejected. 4.6 The above submission of the appellant has been considered. The AO has not found any defect in the books of account and has accepted sales of the appellant as no adverse comments have been made by the AO on sales in the assessment order. Books of account have not been rejected by the AO. The source of above cash deposits is sales as submitted by the appellant. Thus, when on one hand the AO has accepted the claim of sales made by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant I hold Rs.40,00,000/- out of the above cash deposit as explained. The addition of the AO is confirmed to the extent of Rs.3,70,500/- u/s 69A read with 115BBE of the Income Tax Act. 4.8 Appeal is thus partly allowed. 4.2 From the findings recorded by learned CIT(A), we find that learned CIT(A) was convinced with the arguments of the assessee and therefore, he gave substantial amount of relief to the extent of Rs.40 lacs. However, he confirmed an addition of Rs.3,70,500/- by holding that there is some merit in the contention of Assessing Officer as the assessee had disclosed abrupt jump in sales during the months of October and November. While confirming the part addition the learned CIT(A) has not given any specific explana ..... X X X X Extracts X X X X X X X X Extracts X X X X
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