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TMI Blog2022 (11) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... orting the sales effected by the assessee. It is imperative to note here the assessee is not a retail trader to claim that the sales have been made through cash. As observed from the way that the sales have taken place from November-2016 onwards that the assessee has attempted to record his unaccounted cash in the form sale of bullion. It is seen from the bank book submitted in the paper book page 20 that the assessee does not have a sufficient bank balance to make the purchase of bullion. The assessee deposited cash and then made purchase of bullion which is contradicting the claim of the assessee that the cash deposits are made out of cash sales. In view of the above findings, we are of the considered view that there is no error i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 19/10/2019 fixing the date of compliance on or before 23/10/2019. The Ld. AO finally gave one more opportunity on 2/11/2019 to comply with it by 7/11/2019. Since no compliance by the assessee to any of the notices issued during the course of assessment proceedings, a show cause notice was issued on 18/11/2019 fixing the date of hearing on 22/11/2019 requesting the assessee to show cause as to why the cash deposits made by her in her bank account during the FY 2016-17 should not be taxed U/s. 69A of the Act and complete the assessment U/s. 144 of the Act. In response to the show cause notice, the assessee furnished e-reply on 22/11/2019. The assessee further submitted that the cash deposits in the bank accounts were made out of the busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the demonetization period, which were explained and proved as sourced from the sales effected by her. 2. Ld. CIT(A) has not adverted to nor discussed the detailed written submissions filed by the appellant on 4/3/2022 and 5/3/2022 with seven sets of attachments in passing his order. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in confirming the addition of Rs. 73 lakhs when the books of account, the net profit from books, the VAT returns showing the purchases and sales effected - were accepted rejecting only the cash deposits of sales made by the appellant in her bank account, which is opposed to law. Ld. CIT(A) ought to have considered the case laws cited in support of the said proposition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther submitted that the copies of VAT returns also submitted in the paper book to prove the genuinity of the transactions. The Ld. AR relied on the following case laws: (i) ITAT Visakhapatnam Bench decision in the case of ACIT vs. Hirappana Jewellers reported in [2021] 128 taxmann.com 291 (Visakhapatnam - Trib.). (ii) ITAT Bangalore Bench decision in the case of Anantpur Kalpana vs. ITO reported in [2022] 138 taxmann.com 141 (Bangalore - Trib.) 6. The Ld. AR placed heavy reliance on the jurisdictional Tribunal decision in the case of ITO vs. Sri Tatiparti Satyanarayana in ITA No. 76/Viz/2021, dated 16/03/2022. Per contra, the Ld. DR submitted that the assessee is a bullion trader and not a retail trader. The Ld. DR further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion from various parties as detailed in page 63 of the paper book to effect the sales made during the demonetization period. However, the assessee failed to produce the sales invoice copies supporting the sales effected by the assessee. It is imperative to note here the assessee is not a retail trader to claim that the sales have been made through cash. The assessee has also submitted in her paper book that the payments have been made by cheques to the suppliers. Reliance placed by the Ld. AR on the case of ACIT vs. Hirappana Jewellers (supra) is distinguishable on facts that the assessee in this case is a retail trader in jewellery and has made regular sales during the entire year. Similarly, reliance place by the assessee in the case of I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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