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TMI Blog2023 (7) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the assessee by these judgments also. It is not the case that bills of sales of Jewellery doesn t contend the complete address of the parties. Giving the complete address in cash memo/cash sales above Rs. 50 mandatory requirement of GST ACT. In this case such facts do not exist. Further cash transfer from Surat to Mumbai has been recorded in both branches cash book. Addition cannot be made in the hands of assessee merely for the reason that those customers have not transacted with the assessee post or pre demonetization. This could be the trigger point for investigation, but LD AO , despite having complete address and PAN of customers did not make any such inquiry. We confirm the order of CIT(A) to the extent addition deleted by him and reverse the order of the CIT(A) to the extent, he confirmed the addition. Therefore we direct the ld AO to delete the addition. Decided in favour of assessee. - ITA No. 1407/MUM/2021 And ITA No. 331/MUM/2022 - - - Dated:- 14-7-2023 - Shri Prashant Maharishi, AM And Ms. Kavitha Rajagopal, JM For the Assessee : Shri Rajiv Khandelwal, AR For the Revenue : Shri Chetan M Kacha and Shri Minal Kamble, SR DRs ORDER PER PR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unexplained money. Such addition is bad in law erroneous in facts and therefore liable to be deleted. 3. Passing the order against violation of natural justice The Ld. CIT(A) erred in passing the order without providing proper opportunity of hearing to the appellant. Thereby, passing the order without proper opportunity of hearing is erroneous and liable to be set aside. 4. The Appellant craves leave to add, alter, rescind or amend any of the above grounds of appeal. 04. The Brief fact of the case shows that assessee is a company engaged in the business of trading in Diamonds, Gold and Jewellery, it filed its return of income of assessment year 2017-18 on 30.10.2017 declaring loss of ₹ 76,550/-. This return of income was picked up for scrutiny assessment. Necessary notice was issued. 05. During the Course of assessment proceedings the Ld. AO noted that assessee has deposited cash to the tune of ₹ 2,09,65,000/- in its account with Bharat Co-operative Bank, vile parle, Mumbai. Therefore, the assessee was issued show cause notice to submit the complete details in respect of source of cash deposits. The assessee submitted vide a letter dated 11.12.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee also do not show any prior huge cash in hand but in this period only. Further, according to the AO it is very difficult to agree as why assessee would pay interest on borrowed fund where cash to the extent of ₹ 02,09,65,000/- is lying idle in the books . AO further noted that the assessee has deposited specified bank note in the bank account on 3 occasions. On 18.11.2016 ₹ 7,80,000/-, on 28.11.2016 ₹ 02,00,00.000/- and 01.12.2016 ₹ 01,85,000/-. Therefore, the cash was received by the assessee on sale of gold from 01.11.2016 to 09.11.2016 but was deposited in the last days of month of November substantially. The Ld. AO further stated that specified bank notes ceased to be the legal currency from midnight of 08.11.2016 and assessee did not care to deposit ₹ 2,00,00,000/- lying in its hand up to 28.11.2016. The Ld. AO also of the view that cash sales of ₹ 73,47,440/- was made at Surat Branch and ₹ 72,50,000/- have been transferred from Surat to Mumbai. According to the Ld. AO this money was transferred from Surat to Mumbai but the assessee did not deposit till 28.11.2016 and why assessee was not having any bank account in Surat wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mental Representative contesting the appeal of the AO submitted that the Ld. CIT (A) has not given any finding that why there is no cash sale subsequent to demonetization period and prior to the demonetization period. Those customers have neither purchased gold nor purchased Jewellery from the assessee prior or subsequent to these purchases. The assessee has never sold the jewellery and gold to the extent of ₹ 2,00,000/-. Further, The SBN notes were kept in hand for almost 20 days. There is no explanation about transfer of cash from Surat to Mumbai and how it was transported. Despite sale being transported on the day has not been deposited into bank account immediately but after 20 days. All these questions have not been answered by the Ld. CIT(A). 011. Coming to the appeal of the assessee the Ld. Departmental Representative vehemently submitted that the parties have purchased Gold and Jewellery in cash at Surat as well as Mumbai. Three cash purchases have been made on same date at both the places. He submitted that preponderance of probability , with respect to gold purchased by the customer at Surat branch and at Mumbai Branch in cash on the same date shows that it is bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that cash sales from 1.11.2016 to 08.11.2016 are all in excess of ₹ 2 lakhs for which assessee had provide the copies of bills wherein the complete address of the customers are mentioned. The bills are supported by the permanent account no of those parties. The copy of permanent account no. cards is also produced before the Ld. AO, before the Ld. CIT(A) as well as before us. This fact has not been denied by any of the lower authorities. The sales of the assessee at Mumbai branch has also been recorded in the stock register on the day on which sales have been recorded. Therefore, the sales register of the assessee and stock register of the assessee coupled with the cash books are completely matching. With respect to the Surat sales cash book is placed before us at page no 334 of the paper book. None of the sales made in cash to the customer is not supported by the address and pan card of such persons. The Ld. AO also could not show that gross profit shown by the assessee is abnormally high or abnormally low. The sales credited in the profit and loss account though made in cash have also resulted into profit to the assessee which has already been offered for taxation. No doubt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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