9911796707
TMI Blog2024 (7) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the considered view that the entire addition has been made on the basis of surmises and conjectures which have no legs to stand. Moreover, though the AO has alleged unexplained cash deposit during demonetization period but has not brought on record anything to show that the said cash deposits were made in specified bank notes (SBN). AO has referred to huge variation in the cash deposited during the demonetization period and has also referred to the huge surge of revenue from operations but has not pointed out any error or defect in the books of accounts. We find that at clause (iv) at page 5, the AO has mentioned that the assessee has produced the accounts at the fag end of the assessment proceedings. Therefore, AO should examine th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Assessment Year 2017-18. 2. The first substantive grievance of the assessee is that the ld. CIT(A) erred in confirming addition of Rs. 49,49,000/- being the cash deposited during the demonetization period. 3. Briefly stated, the facts of the case are that the assessee filed its return of income electronically declaring loss of Rs. 21,64,923/- on 31/03/2018. The return was selected for scrutiny assessment through CASS and accordingly statutory notices were issued and served upon the assessee. 4. The assessee is a private limited company engaged in filling of earth work and supply of gravel. During the year under consideration, the assessee has deposited cash in his bank accounts during the demonetization period. The assessee was asked to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced on the decision of the Co-ordinate Bench in the case of Pukhraj Nathmal Jain vs. ITO in ITA No. 2815/Mum/2023; AY 2017-18, order dt. 26/02/2024. Per contra, the ld. D/R strongly supported the findings of the AO and read the operative part of the same. 8. We have given a thoughtful consideration to the orders of the authorities below. The undisputed fact is that the books of accounts of the assessee are duly audited by a Chartered Accountant. The audited statement of accounts are placed in the paper book. A perusal of the profit and loss account for the year under consideration show that the assessee has revenue from operations amounting to Rs. 17,02,48,851/- which includes sales of Rs. 15,86,00,000/-. It is also not in dispute that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unity of being heard to the assessee. The AO is also directed to examine the authenticity of the bills furnished by the assessee. Accordingly, this ground is allowed for statistical purposes. 9. Insofar as the carry forward of the claim of business loss is concerned, we are of the concerned view that all that the AO is required is to inform the assessee about the amount of loss as computed by him. Whether the loss in any year may be carry forward to the following year and set off against the profits, has to be determined by the AO who deals with the assessment of the subsequent year. It is for the AO dealing with the assessment in the subsequent year to determine whether the loss of the previous year may be set off against the profits of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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