9911796707
TMI Blog2023 (5) TMI 1380X X X X Extracts X X X X X X X X Extracts X X X X ..... ers were allowed to make deposits in SBNs in a single deposit irrespective of any amounts. Hence, the assessee's argument that the cash was deposited on various dates due to restrictions by the banks is not true. 3. The Ld. CIT(A) has failed to consider the fact that the cash in hand shown by the assessee for the last three years were only in lakhs as tabulated below; and the assessee is failed to explain the reason for huge cash in hand properly. A.Y. Cash in hand as on Amount in Rs. 2014-15 31.03.2014 9,73,042 2015-16 31.03.2015 33,46,006 2016-17 31.03.2016 21,15,826 4. The Ld.CIT(A) has erred in holding that addition u/s.68 would not be possible as particular stream of income has already shown by the assessee without considering the facts that the AO assessed the cash inflow/receipts as unexplained as the source of income itself lacks credibility. 5. For these and such other grounds that may be adduced at the time of hearing it is prayed that the order of the CIT(A) may be reversed and that of the Assessing Officer restored. 4. Brief facts of the case are that the assessee is an individual and efiled his return of income for the assessment year 2017-18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as deleted the addition made under section 68 of the Act by observing as under: 4. In the assessment order Assessing Officer has on page 2 mentioned as under: With regard to cash deposit of his Rs.3,19,52,500/- made in to the bank accounts in form of SBN. The assessee has submitted that out of opening cash balance as on 08.11.2016 of Rs. 3,61,73,669/- a sum of Rs.3,19,52,500/- was deposited in the above bank account". 4(a) From the facts of the case it would appear that assessee has deposited the cash in hand available with him as on 08.11.2016 This cash in hand was deposited in the bank accounts as late as 27.12.2016 and this has been objected by the Assessing Officer. 5. Assessing Officer has nowhere raised the doubt as to availability of adequate cash in hand as on 08.112016. The only objection which the Assessing Officer has taken is on the dates of deposit of cash in the bank The learned AO has in his wisdom held that merely because assessee has made deposits as late as 27 12.2016 the amount of cash even though available in his books of accounts was to be treated as unexplained Assessing Officer has nowhere raised any doubt as to cash book and balance of cash in han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person to hold on and wait, to see what new guidance was given by RBI and what relief it any would be given by Ministry of Finance by way of an extension of time or a reduction in rigour of the scheme Very fact that assessee has deposited the total amount well within the overall limit provided by the Reserve Bank of India cannot in any manner be held against the assessee. 10. It may be worthwhile to mention that income tax is concerned with the real income earned by real people in real business situations. Assessment of income chargeable to tax cannot be an activity conducted "in void", on hypothetical basis and on the notions of what and ideal and imagined businessmen was supposed to do. In the business environment as it existed during the first 50 days of the demonetisation and the expected mental state of the assessee, the decision to defer deposit of cash in the bank can be considered well within normal action and hence not hit by the human probability test theory. The intention of assessee is one of the primary factors which is used to give clarity as to the real purpose of any action which is sought to be interpreted by the taxing authority. The Assessing Officer has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been recorded in the books of accounts as income the same cannot arbitrarily be taxed under section 68 again as income as has been done in this case. The assessee has shown these receipts as being payments received from the debtors. These debtors were all emanating from the sales made and recorded in the books. It would seem that the Assessing Officer has exceeded his powers as he has just allowed cash deposited during the 1st few days and not allowed cash deposited by the assessee in his own bank for other dates without giving any cogent reason. 11. From the above discussion it is apparent that both on facts and on law the Assessing Officer has managed to misguide himself as to the real issue regarding availability of adequate cash in hand with the assessee as on 08.11.2016, Once the assessee has sufficient cash in hand available with him the same cannot be treated as unexplained cash and the addition for the same cannot be made under section 68 of the I.T. Act 1961. On the above mentioned facts and the legal matrix the addition made under section 68 is hence deleted. As a result appeal of assessee is ALLOWED. 6. Aggrieved, the Revenue is in appeal before the Tribunal. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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