9911796707
TMI Blog2024 (8) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... redit/unexplained money. We find force in the argument of assessee that merely due to the contravention of the notification issued by RBI does not mean that the amount collected by the appellant against sales and duly recorded in the books of accounts treated as unexplained cash credit of the appellant. We are of this view that appellant has been able to succeeded in establishing his case and accordingly, the order of the CIT(A) with regard to the unexplained money is hereby set aside and the appeal of the assessee is hereby allowed. - Sri Rajesh Kumar, Accountant Member And Pradip Kumar Choubey, Judicial Member For the Assessee : Akash Bansal, FCA. For the Department : Nicholash Murud, Addl. CIT, DR. ORDER PER PRADIP KUMAR CHOUBEY, JUDIC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has preferred an appeal before the ld. CIT(A) wherein his appeal has been partly allowed. It has been held by the ld. CIT(A) that out of total bank deposits during the demonetization period of Rs. 39,52,500/- a deposit of Rs. 3,35,708/- is held to be explained only. Being aggrieved and dissatisfied with the impugned order, the assessee has preferred the present appeal. 1.2. Ld. Counsel for the assessee challenges the impugned order of the ld. CIT(A) thereby submitting that the ld. CIT(A) has erred in granting relief of only Rs. 3,35,708/- to the appellant ignoring the documents/explanation offered by the assessee. Ld. Counsel for the assessee submits that since the appellant was new into this trading business, the credibility of cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35/Mum/2022] f) Ashok Kumar Singh -vs.- ITO (2019) 56 CCH 320 (Del-ITAT) [ITA No. 6036/Del/2018] g) ITO -vs.- Devender Jeet Singh Kier (2017) 51 CCH 487 (Kol-ITAT) [ITA No. 1185/Kol/2014] h) Vipin Aggarwal -vs.- ITO (2019) 55 CCH 154 (Del-ITAT) [ITA.No.2571/Del/2018] 1.3. Contrary to that ld. D/R has supported the order of the ld. CIT(A). 2. After hearing the submissions of the Counsels of the respective parties, we have perused the order as well as the documents filed by the assessee. While we perused the paper book filed by the assessee, we find that the assessee has filed the following documentary evidences in support of the deposits of the money during the demonetization period which is as follows: a) Bank statement of State Bank of Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esponsibility under section 68 of the Act. Further, the collections and deposits have duly been recorded in the books of account and hence, there is no reason to treat the same as unexplained cash credit of the appellant. Merely because demonetized notes collected after 08.11.2016, does not mean that the amount collected by the appellant against sales and duly recorded in books of account, would become unexplained cash credit under only due to contravention of the notification issued by RBI. Now, relevant portions from the cited decisions are reproduced here for reference: A) Hon'ble Bangalore ITAT in the case of Sri Bhageeratha Pattina Sahakara Sangha Niyamitha -vs.- ITO [ITA No. 646/Bang/2021], has held that: The case of the A.O is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of the income which is already credited in P L account. Hence, there is no occasion to consider the same as income of the assessee by invoking the provisions of Section 68 of the Act. In view of the above deliberations and case laws relied upon by both the parties, we find that the AO was not justified in making an addition of Rs. 2,90,93,500/- u/s 68 of the Act which has rightly been deleted the Id. CIT(A) and we concur with his findings. [Emphasis Added] C) Hon'ble Chennai ITAT in the case of Micky Fireworks Industries -vs.- ACIT [ITA No. 264/Chny/2023], has held that: We find that the only reasoning to treat the said deposits as unexplained cash credit u/s 68 is that the assessee was debarred from dealing in SBN after 08-11-2016. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on once as sales and again as unexplained cash credit which is against tire principles of taxation. It is also on record that tire assessee was having only one source of income from trading in beedi, tea power and pan masala and therefore provisions of section 115BBE of tire Act will have no application so as to treat tire income of tire assessee as income from other sources. Hon'ble Kolkata Tribunal in tire case of CIT Vs. Associated Transport Pvt. Ltd. reported in 84 Taxman 146 on identical facts took tire view that when cash sales are admitted and income from sales are declared as income, wherein tire Hon'ble Tribunal found that tire assessee had sufficient cash in hand in tire books of account of tire assessee, that there was no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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