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TMI Blog2023 (7) TMI 1429X X X X Extracts X X X X X X X X Extracts X X X X ..... ation is not satisfactory in the opinion of the assessing officer. The same cannot be applied to the case of the assessee since the assessee has himself declared the amount of cash deposited in the return of income after duly entering the same in the books of account. Applicability of the provision of section 69A - We find the AO has failed to justify in applying section 69A to the case of the assessee when the assessee itself declared the cash sales in its return of income duly recorded in the audited books of accounts maintained by the assessee. Therefore, the CIT (A) has correctly held that provision of Sec. 69A of the Act cannot be applied in respect of cash deposited which have been duly recorded in the books of account and had already been declared income in the return of income filed by the assessee. Therefore, the grounds of appeal of the revenue is dismissed. - Shri Amarjit Singh, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Appellant : Anil Kumar Das. For the Respondent : Vimal Punamiya. ORDER PER AMARJIT SINGH (AM) : This appeal filed by the Revenue is directed against the order of CIT (A) NFAC, Delhi, dated 05.12.2021 for A.Y. 2017-18. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in assessee's bank accounts. The Appellant is engaged in business of gold bullion and gold jewellery as a wholesaler and retailer AO issued show cause notice to the assessee to explain the source of the deposit Assessee in response explained that the cash deposit is out of sales/counter sales of less than Rs. 2,00,000/- from one person/party wherein according to Income tax Act details of address and PAN are not required to be maintained by appellant company. Hence, confirmations from such persons/ parties could not be made available. Total cash deposit was Rs. 7,04,00,000. The AO added the cash deposit of Rs. 6,92,00,000/-( as reduced by amount of Rs. 10,00,000/- declared in PMGKY and Rs. 2,00,000/- deposited in new currency) as unexplained money under section 69A of the Income Tax Act, 1961 to the total income of the assessee. From the facts as described in the assessment order and as coming out from assessee's submission, it is a dealer in bullion. Sales are made in cash as well as in cheque. In respect of sales below Rs. 2 lakh, assessee is not required to keep the details. Assessee has duly maintained name, address and PAN of purchases above Rs. 2,00,000/-. These detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch the purchase relating to November and December 2016, i.e. the period of denotification was 172772 kg which is 20% of total sales. Had the sale uniform in all months, it should be 16% in two months. So some rise in sales during denotification period is there. However, it may be noted that November month is also the month of festivals during which the sale is greater than other years. In next, financial year 17-18, total sale was 1917111 kg out of which, the sale during November and December 2017 was 510052 kg which is 26.6%. Thus if 26% sale in two months of November and December 2017 has been accepted, there is no reason to doubt the sale of 20% during corresponding months of the year 2016. The appellant has provided details of all sales above Rs 2 lakh which he is legally bound to kept. It is not right on the part of the AO to insist for providing details of sales below Rs 2 lakh which the assessee is not required to maintain. Section 69A reads as Unexplained money, etc. 69A Where in any financial year the assessee is found to be the owner of any money, bullion, jewellery or other valuable article and such money, bullion, jewellery or valuable article is not recorded in the boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has explained the nature and source of such deposit. There are similar decisions in this line. In line in view of the above facts, the addition made by the AO is deleted and assessee s appeal is allowed. 4. During the course of appellate proceeding before us the ld. Departmental Representative (D.R) supported the order of assessing officer and referred page no. 5 of the assessment order stating that assessee has deposited cash in the bank account during the demonetization period which could not be explained. On the other hand, the ld. Counsel contended that assessee is engaged in the business of gold bullion gold jewellery and 90% of the sales made was effected through cheques. He further explained that cash deposit out of sales/counter sales was of below Rs. 2,00,000/- from one person/party for which details of address and PAN were not required to be maintained. The ld. Counsel further submitted that assessing officer has not rejected the books of account of the assessee and assessee purchased gold subject to payment of custom duty and detail of gold purchased and sold along with closing stock were properly maintained in the books of account. The ld. Counsel further submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ster etc. The assessee has maintained the books of account in the form of computerised ledger, cash book, bank book, sale register, purchase register and stock book. The assessee also explained that the cash deposited was out of sales/counter sales of less than of Rs. 2,00,000/- from one person/party wherein in detail of address supported with documentary evidences and PAN were not required to be maintained by the assessee company. The assessee has maintained the complete detail along with PAN of the transaction exceeding Rs. 2,00,000/- as per the detail placed on the paper book at page no. 73 to 76 of the paper book. The assessee has also placed before the authority below the month wise purchase details along with the purchase register from April 2016 to March 2017 out of which the assessee has made month wise sale from April 2016 to March 2017. The assessee has also placed on record as per page 63 of the paper book monthly stock statement showing month wise opening stock, in word because of purchases and outward because of sale along with closing stock. The assessee has substantiated by giving evidences on the basis of its books of accounts, stock register, and other relevant rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stock position was matched with the sale and purchase of the goods made during the year under consideration. It is also noticed that assessee had not declared exorbitant profits during the year since gross profit rate of 0.90% pertaining to A.Y. 2017-18 was less that the gross profit rate of 1.05% declared in the previous year. 7. Looking to the facts and circumstances as elaborated supra the AO has neither disproved the genuineness of purchase/availability of stock of jewellery corresponding to the sales nor the claim of the assessee that source of cash deposit was made out of the cash sale effected during the year under consideration. We have also perused the judicial pronouncements relied upon by the assessee in the case of ACIT Vs. Hirapanna Jewellers, ITA No. 253(Viz) of 2020 dated 12.05.2021 wherein held as under: [2021] 128 taxmann.com 291 (Visakhapatnam - Trib. [2022] 96... INCOME TAX: Where AO made addition under section 68 on account of huge cash amount deposited by assessee-jeweller in its bank account post demonetization, since assessee had explained source of said cash deposits as sales of jewellery, produced sale bills and admitted same as revenue receipt as well as o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer specially authorised by it in this behalf is satisfied that it is necessary or expedient so to do, in the interest of sovereignty and integrity of India, defence of India, security of the State, friendly relations with foreign States or public order or for preventing incitement to the commission of any cognizable offence relating to above, it may subject to the provisions of sub-section (2) for reasons to be recorded in writing, by order, direct any agency of the Government or intermediary to block for access by the public or cause to be blocked for access by the public any information generated, transmitted, received, stored or hosted in any computer resource. (2) The procedure and safeguards subject to which such blocking for access by the public may be carried out, shall be such as may be prescribed. (3) The intermediary who fails to comply with the direction issued under sub-section (1) shall be punished with an imprisonment for a term which may extend to seven years and shall also be liable to fine. ] It is clear that Sec. 69A of the Act is applied when the assessee is found to be owner of any money which is not recorded in the books of account. However, in the case of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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