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TMI Blog2022 (11) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... ints as per his order dated 29/03/2022. 3. The brief facts of the case are that the assessee filed return of income on 07/11/2017 clearing total income of Rs.91,86,160/-. The case was selected for scrutiny under CASS and other statutory notices were issued to the assessee. The assessee filed reply which is placed at paper book page nos. 3 to 11. The AO observed that during demonetization period, the assessee firm had deposited Rs.2,15,80,640/- in its current account bearing No.913020029514020 of Axis Bank, Bijapur. This includes old and new currency which was deposited daily collections from the hospital. During the demonetization period, the medicine shops/doctors were allowed to collect the old currency notes (SBN) vide Ministry of Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5) 99 ITR 375 (Delhi) 6. Vedanta Ltd. (2021) 279 Taxman 358 (Born) 7. V. K. Bharathi (2019) 102 taxrnann.com 255 (Kar) 8. Rajalakshmi Mills Ltd. v. ITO (2009) 121 lTD 343 (Chennai)(SB) 9. Lokesh M. (2021) 187 lTD 342 (Bang) 4. After discussing in detail in his order, he observed that the order passed by the AO is erroneous and prejudicial to the interest of the Revenue, accordingly he directed the AO to make fresh assessment in accordance with law and it was also directed to the AO in regard to cash deposit he has to follow the guidelines issued by CBDT during the demonetization period and pass the order accordingly. 5. Aggrieved from the order of the ld.Pr.CIT, the assessee filed appeal before us. 6. The ld.AR submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ides and perusing the entire material on record and examining the order of the lower authorities, we observe that the AO has not examined the details with respect to cash deposits made during the demonetization period in his bank account as per the CBDT guidelines with the supporting documents, he has submitted only a letter and certificate from the bank, which is placed at page No.12 & 13 of paper book and we do not find anywhere that there was any enquiry made by the AO in this regard viz. cash opening, availability of cash and application of cash during the demonetization period. We also observe that the AO has not verified the cash deposited by the partners and also loan taken from Dr. HT Memorial Trust and cash embezzlement and interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting procedures laid down by the central board of direct taxes issued from time to time in case of operation clean. The 1st of such instruction was issued on 21/02/2017 by instruction number 03/2017. The 2nd instruction was issued on 03/03/2017 instruction number 4/2017. The 3rd instruction was in the form of a circular dated 15/11/2017 in F.No. 225/363/2017-ITA.II and the last one dated 09/08/2019 in F.no.225/145/2019-ITA.II. These instructions gives a hint regarding what kind of investigation, enquiry, evidences that the assessing officer is required to take into consideration for the purpose of assessing such cases. 8. In 1 of such instructions dated 09/08/2019 speaks about the comparative analysis of cash deposits, cash sales, month ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee falls into any of the above parameters are not. 8.2 The assessee is directed to establish all relevant details to substantiate its claim in line with the above applicable instructions. We are aware of the fact that not every deposit during the demonetisation period would fall under category of unaccounted cash. However the burden is on the assessee to establish the genuineness of the deposit in order to fall outside the scope of unaccounted cash. The Ld.AO shall verify all the details / evidences filed by the assessee based on the above direction and to consider the claim in accordance with law. Needless to say that proper opportunity of being heard must be granted to the assessee. The assessee may be granted physica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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