9911796707
TMI Blog2024 (8) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... to adjudicate the issue on merits. We note from the monthly sales submitted before the CIT(A) that business has been carried out by the assessee only for 10 months. From the purchase and sales for the month of September, October and November 2016 is not extraordinary in trends. Therefore keeping cash of Rs. 3,25,000 is meagre and assessee has also submitted that cash deposited is related with the turnover from 9.11.2016 to 16.11.2016 for 8 days and remaining cash was before 8.11.2016. If we consider the average sales per day for 26 days in a month, turnover comes to Rs. 32,780. Accordingly turnover for 8 days is Rs. 2,62,240 which is more than the disallowed amount of Rs. 2,50,000. Since the assessee has not maintained books of account ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 016 to 30.12.2016 in Andhra Bank, Pulivendla Branch, Andhra Pradesh and assessee had not filed return of income. Notice u/s. 142(1) was issued against which assessee did not comply and subsequently other notices were issued on different dates, but there was no response from assessee s side. Accordingly the AO was bound to proceed exparte. The AO called bank statement u/s. 133(6) of the Act on 25.07.2019 which was provided and it was noticed from the details that assessee had deposited cash in old currency notes of Rs. 500 1,000 and also deposited new currency notes of Rs. 500 2,000 during the demonetisation period. The AO treated the entre cash deposits during the demonetisation period as unexplained investment u/s. 69A and section 115BBE w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income. Since the assessee is a sub-dealer and the margin is very low in the range of 2 to 3% depending upon product sales, the profit estimated by CIT(A) is not justified. He further submitted that turnover achieved is Rs. 85,22,740. The assessee has deposited cash only in old currency of Rs. 3,25,000 upto 17.11.2016, thereafter he has stopped accepting in old currency notes and these are part of the turnover during the demonetisation which is very meagre amount. The CIT(Appeals) has accepted the turnover, therefore it should not be considered u/s. 69A of the Act. The ld. CIT(A) has also given relief to the assessee of Rs. 75,000. 6. On the other hand, the ld. DR relied on the order of the lower authorities and submitted that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. We note from the monthly sales submitted before the CIT(A) that business has been carried out by the assessee only for 10 months which is placed at page 17 of the PB. The sales shown by the assessee is Rs. 79,92,740. However, the VAT return filed is Rs. 85,22,740. The ld. CIT(A) has accepted that turnover of the assessee is mostly carried out by the assessee in cash. We note that the turnover for 10 months is Rs. 85.23 lakhs, as per sales reported in page 17 of PB purchase is Rs. 10,29,026 and sales is Rs. 10,66,880 for the month of November 2016. The purchase sales are for the month of September is Rs. 9,48,850/- and Rs. 9,34,370/- respectively. In the month of October, purchase is Rs. 10,12,198, however sales is Rs. 4,35,040 and most p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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