9911796707
TMI Blog2024 (7) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... ot reject the books of accounts of the assessee. The contention of the assessee that it had received cash of Rs. 13,95,000/- from Zegar Gas out of sales invoices of Rs. 32,62,011/- raised from 13.06.2016 to 26.10.2016 was not disputed. It is not even the case of the authorities below that the assessee has received cash after the demonetization on 09.11.2016. Whatever released by the assessee through sales was recorded in the cash book and the amount of cash deposited was the collections made till 07.11.2016 which fact was also admitted by the Ld.CIT(A) in his order and there has been no amount of cash collection by the assessee after demonetization period. It is not in dispute that the assessee is into the business of trading in fire crackers. Coordinate bench of the Tribunal in the case of M/s Shivam Industries Pvt. Ltd. [ 2024 (2) TMI 1399 - ITAT DELHI] held that when the audited books of account were not rejected and the sales of the assessee have not been disturbed the Revenue authorities are precluded from making any addition u/s 68 of the Act in respect of the cash deposits made into bank account during demonetization period. .We are of the considered view that there cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he cash collected much later to the date of demonetization. Therefore, the explanation of the assessee was not accepted. The assessee preferred appeal before the Ld.CIT(A) and the Ld.CIT(A) sustained the addition made by the AO u/s 69A of the Act. 4. Ld. Counsel for the assessee, at the outset, submits that addition u/s 69A of the Act cannot be made in respect of cash deposits recorded in the books of account. Ld. Counsel for the assessee referring to the provisions of Section 69A of the Act submits that this provision is applicable only where money, bullion, jewellery or valuable article is not recorded in the books of account. Ld. Counsel submits that the cash deposits made into bank account were recorded in the books of account of the assessee, the books were audited, Assessee has furnished tax audit report and, therefore, the addition cannot be made in respect of cash deposits which were recorded in the books of account u/s 69A of the Act. 5. The Ld. Counsel for the assessee further submits that the AO as well as the Ld.CIT(A) examined the cash book furnished by the assessee and found no discrepancies. Ld. Counsel submits that the AO accepted the books of account, sales were no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its made into bank account in its books of account and the same were audited and tax audit report was also furnished. On this legal issue, we find that the Mumbai Tribunal in the case of ITO Vs. M/s Zee Bangles Pvt. Ltd. (supra) held as under: 9. We also find that Id. CIT(A) has rightly held that Sec. 69 provides that in case the assessee is found to be owner of any money, bullion, jewellery or any other valuable article and same is not recorded in the books of account, it may be considered to be deemed income of the assessee in case he is not able to provide explanation or his explanation 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. Regarding applicability of the provision of section 69A of the Act we have perused the provisions of Section 69A of the Act which is reproduced as under: [69A Power to issue directions for blocking for public access of any information through any computer resource. - (1) Where the Central Government or any of its officer specially authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had already been declared income in the return of income filed by the assessee. Therefore, the grounds of appeal of the revenue are dismissed. 10. Similarly, in the case of Sobha Devi Dilipkumar Vs. ITO (supra) the Vishakhapatnam Bench of the Tribunal held as under: 4. At the outset, the Ld. Authorized Representative submitted that the assessee being involved in money lending business, on the monies lent, the assessee has received an amount of Rs. 3,63,609/- as interest income and the principal amount was given as loan during the previous year relevant to the assessment year 2017-18 to various persons and the same fact was recorded in the books of account which has been furnished before the Ld. Revenue Authorities. However, the assessee made cash deposits during the demonetization period and therefore the Ld. AO treated the amount of cash deposits as unexplained money u/s 69A of the Act. The Ld. AR further submitted that the assessee has disclosed the investments in the books of accounts and the computation of income which was offered for taxation and therefore the question of invoking the provisions of section 69A does not arise. The Ld. AR relied on the decision of this Bench of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and such money, bullion, jewellery or valuable article is not recorded in the books of account, if any, maintained by him for any source of income and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article or the explanation offered by the assessee is not in the opinion of the AO satisfactory, the money and the value of the bullion jewellery or other valuable article may be deemed to be the income of the assessee for such financial year . Therefore, it is very much clear from the provision of Section 69A of the Act if the assessee is found to be the owner of any money which is not recorded in the books of account the same may be added as deemed income u/s 69A of the Act if the assessee offers no explanation or the explanation offered by the assessee in the opinion of the AO is not satisfactory. 12. In the case on hand, the assessee made cash deposits into the bank account which is reflected in its balance sheet, the books were audited, the assessee has furnished the tax audit report and it was also the explanation of the assessee that out of cash deposit of Rs. 69,25,000/-, Rs. 13 lakhs was from out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account. Thus, we find that the decisions relied on by the Ld.CIT(A) in sustaining the addition u/s 69 of the Act are distinguishable on facts and they do not have any relevance to the facts of the assessee s case. 18. We further observed that the AO except stating that the assessee has not furnished bills and vouchers for purchases he has not found fault with the books of account maintained by the assessee, the cash book, purchases, sales register, stocks, etc. The AO did not reject the books of accounts of the assessee. The contention of the assessee that it had received cash of Rs. 13,95,000/- from Zegar Gas out of sales invoices of Rs. 32,62,011/- raised from 13.06.2016 to 26.10.2016 was not disputed. It is not even the case of the authorities below that the assessee has received cash after the demonetization on 09.11.2016. Whatever released by the assessee through sales was recorded in the cash book and the amount of cash deposited was the collections made till 07.11.2016 which fact was also admitted by the Ld.CIT(A) in his order and there has been no amount of cash collection by the assessee after demonetization period. It is not in dispute that the assessee is into the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
