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TMI Blog2023 (2) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income for the assessment year under consideration on 20/09/2016 declaring Nil income after claiming Chapter VIA deduction u/s 80P of the Act of Rs. 41,71,787/-. It was noticed that the assessee has been collecting membership fees accepting deposits and providing credit facilities to the members. 2.2 The Ld.AO noted that the assessee had deposited Specified Bank Notes [SBN's] received from its members during the period of demonetization into its bank account no.220 amounting to Rs.38,82,000/- and in bank account no.20589 amounting to Rs.54,58,000/- with Shri.M.Vishvesvaraya Co-operative Bank Ltd, Shankarmutt Road Bangalore. In course of the assessment proceedings, the assessee explained that its members had deposited the SBN' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idences filed by assessee. 3.2. On the contrary, the Ld.DR relied on the orders passed by the authorities below. We have perused the submissions advanced by both sides in the light of records placed before us. 4. We have carefully considered the rival contention and perused the orders of the lower authorities. 4.1. Admittedly the assessee has deposited cash during the post-demonetization between 09/11/2016 and 30/12/2016. Therefore Ld.AO made addition of said amount as income of the assessee u/s. 68 of the income tax act, on the ground that the assessee ought not to have accepted SBN s which were no longer a legal tender. At the outset, we are of the view that the cash book and the confirmations filed by the assessee should have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntries and bank statement to identify cases 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 li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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