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TMI Blog2022 (11) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... with preliminary suspicion of back dating of cash and is or fictitious sales. The instruction is also suggested some indicators for suspicion of back dating of cash else or fictitious sales where there is an abnormal jump in the cases during the period November to December 2016 as compared to earlier year. It also suggests that, abnormal jump in percentage of cash trails to on identifiable persons as compared to earlier histories will also give some indication for suspicion. Non-availability of stock or attempts to inflate stock by introducing fictitious purchases is also some indication for suspicion of fictitious sales. Transfer of deposit of cash to another account or entity, which is not in line with the earlier history. Therefore, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.2 During the year under consideration, the assessee declared a turnover of Rs.70,40,80,419/- and a profit of Rs.23,92,516/- as per statement of Profit and loss, which was uploaded by the auditor while filing form 3CA/3CD on 31.03.2018, and the taxes were also paid on such profits. However, the Ld.AR stated that there was delay in filing the return of income. He submitted that the assessee had entrusted the work of filing return to a Statutory Auditor who was appointed for a period of 5 years from 30.09.2014 at the Annual General Meeting held on 30.09.2014. 2.3 It is submitted that, he was also the tax auditor under Income Tax Act, 1961. The assessee had furnished required particulars and books in time for audit and finalisation for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the assessment proceedings, the Ld.AO issued notices / communications electronically to the mail address that was not in use. The Learned Assessing Officer has passed an order u/s 144 by making addition of Rs.2,98,08,080/- U/s 69A read with section 115BBE, being cash deposited during the demonetization period as unexplained money, without considering the turnover of Rs.70,40,80,419/-, the figures which were readily available in the IT portal when the form 3CA/3CD was filed by the auditor. Entire sales are only in cash as the buyers of currency are small and sundry shop keepers whose purchases on an average is Rs.150/. In each case at each time the purchases range from Rs. 10/- to Rs. 5000/- which are made in cash. 2.7 Further, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... online and all the transactions are accounted automatically. There is no scope for omission or commission and the assessee gets his gross margin which is around 1.75%. After meeting all the expenditures, the assessee s net profit will be around 0.25% to 0.30% of the gross collection. c) Business net profit adopted at the rate of 4% is unfounded, groundless, uncorroborated, not backed up by any evidence or data and not based even on earlier year assessments. Hence it is not Best Judgement Assessment Order d) The assessee has maintained regular computerized books of account and all receipts are recorded in books. The Ld.AO made addition of Rs.2,98,08,080/- U/s 69A read with section 115BBE, being cash deposited during the demoneti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BH Road, Shimoga, which is factually incorrect. The Ld.AR submitted that even till this day the assessee is carrying on the business in the given address and even in the ROC record, the same address is available. The Ld.AR submitted that; it is only when someone from the income-tax office, during the last week of December, informed the assessee telephonically about non-compliances to the demand and penalty notices, he logged into the old email-id on 30.12.2019 and found the exparte order, demand notice and penalty notices. 6. Based on the above, the Ld.AR submitted that in the interest of justice, the issue may be remanded for proper verification. The Ld.DR did not object to this submission made by the Ld.AR. 7. We have ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vides that whether in such cases the books of accounts have been rejected or not where substantial evidences of vide variation be found between these statistical analyses. Therefore, it is very important to note that whether the case of the assessee falls into statistical analysis, which suggests that there is a booking of sales, which is non-existent and thereby unaccounted money of the assessee in old currency notes (SBN) have been pumped into as unaccounted money. 8.1 The instruction dated 21/02/2017 that the assessing officer basic relevant information e.g. monthly sales summary, relevant stock register entries and bank statement to identify cases with preliminary suspicion of back dating of cash and is or fictitious sales. The in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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