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TMI Blog2024 (5) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... ndependent auditors report. Hon ble Supreme Court in the case of Lalchand Bhagat Ambica Ram [ 1959 (5) TMI 12 - SUPREME COURT] has held that when entries in books of account in regard to cash balances were held to be genuine, there was no escape from conclusion that assessee had offered reasonable explanation as to source of all high denomination notes which it encashed on 19th January 1946 and it was not open to ITAT to accept genuineness of those books and accept assessee s explanation in part and reject same in regard to balance sum. It was observed that the ITAT in arriving its conclusion indulged in suspicions, conjectures and surmises and acted without any evidence or upon a view of facts which could not reasonably be entertained or f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od was as part of the normal business receipts. 3. Assessee preferred an appeal before the Learned CIT(A) on 13.01.2020. Learned CIT(A) vide order dated 31.03.2023 upheld disallowance made by the AO. 4. Being aggrieved appellant assessee preferred present appeal. 5. Learned assessee s representative submitted that during assessment proceedings assessee vide letter dated 24.12.2019 explained that assessee was engaged in one of the businesses of running of a petrol pump which was the main source of cash sales that were deposited in the bank from time to time throughout the year. The AO required assessee to show cause as to why disallowance of difference between cash deposited AY 2016-17 and 2017-18 amounting to Rs. 3,10,82,894/- should not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on made by the AO under Section 69A 65,49,189 6. The table showed that the quantity purchased during 2017- 18 was higher than purchased in 2016-17. The said purchase for AY 2017-18 was made by higher price. Assessee submitted that its cash revenue in 2017-18 increased from AY 2016-17 because of increased per unit price for sale and increased volume sold. Notification dated 08.11.2016 of the Govt. of India declared that specified bank notes shall continue to be legal tender from 09.11.2016 to 2nd December, 2016 for purchase of petrol, diesel and gas at the stations operating under the authorisation of the Public Sector Oil Marketing Companies. So Assessing Officer was not justified in holding that no valid expenses regarding source of cash d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conclusion indulged in suspicions, conjectures and surmises and acted without any evidence or upon a view of facts which could not reasonably be entertained or finding was perverse which could not be sustained and Supreme Court was entitled to interfere with such findings and therefore the addition was deleted. 10. From perusal of above material fact especially treating the cash deposit as unexplained cash on basis of books of account without rejecting the same is legally not permissible as per ratio of judgment in Lalchand Bhagat Ambica Ram s case (supra). Therefore, the impugned orders dated 18.12.2019 and 31.03.2023 are not legal and sustainable and deserve to be set aside. 11. No other point was argued. 12. In the result the appeal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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