9911796707
TMI Blog2023 (8) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... dmittedly, this cash deposit in OD bank account by the assessee is not clearly established by the Revenue whether it is in demonetized currency or in the new notes but it is an explained source and out of sale proceeds. At best, some profit element can be added in this cash sales of Rs. 31,21,000/- because the assessee also could not back the sales by evidences that the entire cash deposits are on account of sale proceeds or sale receipts. Hence, estimate a reasonable disallowance of 10% on this and direct the AO to tax the same under normal rates because being business income this is not to be assessed u/s. 115BBE of the Act. Appeal of the assessee is partly allowed. - ITA No.: 791/CHNY/2022 - - - Dated:- 28-7-2023 - Shri Mahavir Sin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 500 Specified Bank Notes to the extent of Rs. 31,21,238/- and according to AO, the assessee partner admitted the same as unexplained cash deposit and declared under Pradan Mantri Garib Kalyan Yojana (PMGKY) scheme amounting to Rs. 31,21,000/- and agreed for payment of taxes on the same. But in the return of income filed, the assessee has not declared this income and therefore, notice u/s. 148 of the Act dated 20.02.2019 was issued and the case was reopened and assessment was framed u/s. 143(3) r.w.s. 147 of the Act vide order dated 12.12.2019. The AO made addition of unaccounted cash u/s. 69 of the Act and applied the provisions of section 115BBE of the Act. Aggrieved assessee preferred appeal before CIT(A). 4. The CIT(A) also confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. 5. I have heard rival contentions and gone through facts and circumstances of the case. Now before me, the ld.counsel for the assessee drew my attention to the statement recorded and stated that cash collection receipts being nothing but are sale collections and the alleged statement of one of the partner Shri K. Srinivasan was recorded under compulsion that the assessee is surrendering this amount of Rs. 31,21,000/- under PMGKY scheme. The ld.counsel referred to the relevant question No.14, 15 16 and the answer of the same, which reads as under:- 14. It is noticed from the details taken from the diary that the collection amount during the period is Rs. 37,57,260/- and receipts from other sources which are not identified is Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initiate penal or prosecution proceedings as I am making the declaration to purchase peace. In view of the above, the ld.counsel for the assessee stated that the assessee firm has not accepted the alleged surrender by the partner for the reason that the assessee s statement was obtained by compulsion ad coercion and also in the night of 14.03.2017 at 10 p.m., when the survey party concluded the survey proceedings. The ld.counsel for the assessee referred to question Nos.11, 12 13 and the answers of the same, which reads as under:- 11. Please provide proof for the cash collection receipts relating to sales during the period November and December 2016? Ans: The details are maintained only in the Diary mentioned above. I have n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh books is deposited in the bank account but nothing is coming out, whether it is in old or new notes i.e., whether it is in demonetized currency or new currency. Even otherwise, the ld.counsel argued that once this is out of explained source, no addition can be made either u/s. 69 or u/s. 69A or u/s. 68 of the Act. The ld.counsel drew our attention to the assessment order that the unaccounted cash has wrongly been assessed u/s. 69 of the Act, whereas if at all assessment is to be made, it should be made u/s. 69A of the Act. He explained that section 69 of the Act is for unexplained investment and section 69A is for unexplained money. 6. When this was confronted to ld. Senior DR, he could not answer what is the quantum of demonetized cu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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