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TMI Blog2024 (2) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 68 as mentioned in assessment order. 2. On the facts and circumstances of case and in law the Ld CIT(A) erred in charging interest u / s 234B of Income Tax Act 1961. 3. On the facts and circumstances of case and in law the Ld CIT(A) erred in initiating penalty u / s 271AAC of Income Tax Act 1961. 4. The assesse carves leave to add further grounds or to amend or alter the existing grounds of appeal on or before the date of hearing. 3. The Assessee is engaged in the business of whole sale and retail trading of cloth. The year under consideration, the Assessee has declared an income of Rs.3,31,710/- by filing the return of income on 1.7.2017. The case was selected for scrutiny under CASS and the statutory notices were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithdrawal from bank, as to why it was not deposited in the bank one instalment. * If the assessee have sufficient amount cash in hand and withdrawal from bank, why assessee again and again cash withdrawal from Banks. Means the earlier amount expand by assessee than again withdrawal from Banks. * It is seen from financial year 2015-16, the assessee has cash balance was Rs 53,44,882/- and the cash on hand as on 31/03/2016 was only Rs 48795/-. During the year under consideration the assessee have shown cash balance at Rs 33,40,327/- as on 09/11/2016. The cash deposited by the assessee during the demonetisation is to the tune of Rs 39,34,000/-, This indicates that the cash withdrawal made prior to the demonetisation period and amount rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal before the CIT(A) who upheld the order of the CIT(A). Aggrieved the Assessee is in appeal before the Tribunal. 5. The learned Authorised Representative (the Ld. AR) submitted that the Assessee is engaged in the business of wholesale as well as retail trading in cloth and in retail trading the Assessee does cash sales. The Ld. AR submitted that the AO has not disputed the sales figure of the Assessee and has not rejected the books of accounts of the Assessee. Given this the AO making addition towards cash deposits which is generated from cash sales would result in double addition. The Ld. AR drew our attention to the various details in the form of cash book, stock statement, sales register and purchase register submitted before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has also furnished details pertaining to parties of purchases and sales above Rs.50,000 along with bills. 8. The AO and the CIT(A) have not recorded any adverse finding with regard to the various details furnished by the assessee before them and that the AO himself has recorded the finding from the verification of cash book that the cash balance as on 09/11/2016 was Rs 33,40,327/-. The addition is made for the deposit of SBN during demonetization period on the ground that there is no reason for assessee to hold such huge cash and that the assessee ought to have incurred expenses in cash. The amount of sales which is not disputed is already offered to tax by the assessee by reflecting the same in the trading / P&L Account which fact is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing that when the assessee had already offered sales realisation and such income is accepted by the Assessing Officer to be the income of the assessee, addition of the same amount once again under section 68 of the Act would tantamount to double taxation of the same income. 6. Having heard learned counsel for the parties and having perused the documents on record, we are in agreement with the above view of the Tribunal." b. CIT Vs Kailash Jewellery House [TA No. 613/2010] (Del HC) "The Tribunal also observed that it is not in dispute that the sum of Rs 24,58,400/- was credited in the sale account and had been duly included in the profit disclosed by the assessee in its return. It is in these circumstances that the Tribunal observed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son to F.Y. 2015-16 @ 31.44%, the Ld.AR referred to the cash flow statement, cash book and demonstrated the details of deposits made out of the cash sales and the assessee has been consistently maintaining the stock of Rs.68.07 crs for the F.Y 2015-16 and for F.Y 2016-17 it was maintained at Rs.65.38crs and the cash sales are part of the stocks maintained which is not disputed. Further the addition has been made only on the basis that after demonetization, the demonetized notes could not have been accepted as valid tender. Since the cash sales proceeds/receipts received from ITA No.1420/Mum/2023 A.Y. 2017-18 Swarnasarita Jewellers 11 the customers are reflected in the Audited Profit & Loss account as income and if the cash deposits are adde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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