9911796707
TMI Blog2023 (9) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... books of accounts. The cash received from the debtors were deposited in the bank account on the same date, but the entries for the same were made on combined basis. This has led to negative cash balance in the books of accounts for 2-3 days but the assessee had sufficient cash balance to deposit cash of Rs. 6,56,000/- on 16.11.2019 as cash sales on that day itself was of Rs. 7,16,325/- and, therefore, the difference was explained to the AO as well as the CIT(A) which was totally ignored by both the Authorities. Thus, the addition made by the AO u/s 69A of the Act does not survive. Hence, appeal of the assessee is allowed. - Ms. Suchitra Kamble, Judicial Member For the Assessee : Smt. Neeta Lodha, AR For the Revenue : Ms. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said reply, the Assessing Officer held that as per Government Notification only sales amount in SBN notes depositing during demonetisation can be allowed and, therefore, made addition of Rs. 9,00,000/- under Section 69A of the Act. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the assessee is a retail dealer of Bharat Petroleum and is engaged in the business of reselling of petroleum products and other allied products. The sale of the firm is on cash basis and, therefore, during the year under consideration demonetisation took place on 08.11.2016, however, the supply of petrol and diesel continued to be in the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks were rejected in assessee s case and in fact the cash books as well as cash deposited during the demonetisation period was on the basis of heavy cash sales during those days. The contention of the Ld. AR that due to heavy cash sales on those days, it was not practicable for the Accountant to enter the cash entries immediately in the books of accounts. The cash received from the debtors were deposited in the bank account on the same date, but the entries for the same were made on combined basis. This has led to negative cash balance in the books of accounts for 2-3 days but the assessee had sufficient cash balance to deposit cash of Rs. 6,56,000/- on 16.11.2019 as cash sales on that day itself was of Rs. 7,16,325/- and, therefore, the dif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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