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TMI Blog2023 (8) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... e without enquiring the huge cash deposit in demonetized currency in violation of the extant provisions regarding dealing in demonetized currency has rendered the order erroneous and prejudicial to the interest of the Revenue. Therefore, the learned PCIT, in our opinion, is fully justified in invoking the provisions of section 263 - Decided against assessee. - Shri R.K. Panda, Vice-President AND Shri Laliet Kumar, Judicial Member For the Assessee : Shri K.A. Sai Prasad, CA For the Revenue : Shri Vijay Bhaskar Reddy, CIT(DR) ORDER PER R.K. PANDA, VICE-PRESIDENT This appeal filed by the assessee is directed against the order dated 24/03/2022 of the learned Pr.CIT-1 Hyderabad, relating to A.Y.2017-18. 2. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee had cash balance of Rs. 10,73,295/- as on 8.11.2016 and has accepted Rs. 39,74,500/- from its debtors who are all private hospitals which were deposited into his bank account. According to the learned PCIT, the Assessing Officer has accepted the contention of the assessee which is contrary to the extant provisions during the demonetization period. He was of the opinion that the same amount should have been brought to tax. Since the same has not been done, the learned PCIT held that the order passed by the Assessing Officer u/s 143(3) on 17.12.2019 is erroneous and prejudicial to the interest of the Revenue. Accordingly, a notice u/s 263 of the I.T Act dated 15.2.2022 was issued to the assessee asking the assessee to explain as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit of Rs. 39,74,500/- of money received from its debtors, the sum and substance of the arguments of the taxpayer is that the transactions on the nature of trade transactions. The issue is the taxpayer could have received the money. on transfer from its debtors instead of taking the cash in demonetized notes and depositing the same in its bank account, for which, the reason being given Was that the money was received from the debtors for sales made prior to demonetization period and if it did not accept cash at that point of time, it could not have realized the sale proceeds as most of them would have turned bad debts. ln addition to the above, it also submitted license issued by the Drugs Control Administration, Govt. of Telangana whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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