9911796707
TMI Blog2023 (7) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... Act') dated 27.12.2019 by the Assessing Officer, Circle-13(1), Delhi (hereinafter referred to as 'ld. AO'). 2. The only effective issue to be decided in this appeal is as to whether the ld.CIT(A) was justified in confirming the addition made in the sum of Rs. 52,60,000/- u/s 68 of the Act r.w.s. 115BBE of the Act in respect of cash deposits made during demonetization period, in the facts and circumstances of the instant case. 3. We have heard the rival submissions and perused the material available on record. The assessee is engaged in trading and processing of food grains. The assessee filed its original return of income on 12.07.2017 declaring total income of Rs. 1,38,97,643/-. Later, a revised return was filed on 29.05.2018 showing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submitted confirmations from 12 parties out of total 1624 debto Rs. In respect of the remaining 1612 cases, neither any details of PAN nor complete addresses of the debtors were furnished. Accordingly, the ld. AO disbelieved the entire explanation given by the assessee and proceeded to make an addition of Rs. 52,60,000/- in respect of cash deposits made in specified bank notes during the demonetization period as unexplained cash credit u/s 68 of the Act r.w.s. 115BBE of the Act. 4. It is not in dispute that the assessee company is maintaining regular books of account which is duly subjected to statutory audit under the Companies Act and tax audit u/s 44AB of the Income-tax Act. It is not in dispute that the cash deposits made by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etails of cash received from various debtors were duly furnished by the assessee comprising the name of the party, address, amount due, amounts received and balance due from the said party. These details are also enclosed in pages 154 to 193 of the paper book filed before us. It is a fact on record that the assessee had made total cash sales recovery of Rs. 15,43,49,743/- during the year and out of this, only a sum of Rs. 52.60 lakhs is disputed by the ld. AO. From the business model operated by the assessee, the assessee has been regularly making cash and credit sales to these customers. The customers pay the dues to the assessee only in cash and as stated, supra, a sum of Rs. 15.43 crores has been received during the year under considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crutiny assessment orders were framed u/s 143(3) of the Act on 31.03.2014, 29.02.2016 and 25.07.2016 for assessment years 2012-13, 2013-14 and 2014-15 respectively. Even the Standard Operating Procedure (SOP) issued by the Department vide CBDT Instruction No.03/2017 dated 21.02.2017 in connection with the assessment of demonetization deposits clearly states that there should not be abnormal jump in cash sales and in the instant case cash is deposited within one or two days from the time of its receipt. At the cost of repetition, to the extent of sales made, the stock position is also correspondingly reduced by the assessee which goes to prove the genuineness of the claim of the assessee. On examination of the cash book of the assessee, we f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no occasion to inflate the stocks by introducing fictitious purchases by the assessee; there was no transfer of deposited cash to another account or other entity which are not relevant for the assessee. Hence, even as per the SOP dated 21.02.2017 issued by the CBDT which is mandatorily to be followed by the Revenue authorities, no addition could be made in the instant case. 5. In view of the aforesaid observations, we hold that the addition made in the sum of Rs. 52,60,000/- in the instant case in the hands of the assessee is grossly unjustified and, hence, are hereby directed to be deleted. Accordingly, the grounds raised by the assessee are allowed. 6. In the result, the appeal of the assessee is allowed. Order pronounced in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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