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TMI Blog2022 (11) TMI 1523X X X X Extracts X X X X X X X X Extracts X X X X ..... Government, the same in my considered view would by no means justify the treating of the amount in question as the assessee s unexplained money u/s.69A. Assuming that the assessee had continued with receiving of the sale proceeds in the form of demonetized currency even after lapse of the specified time period as provided by the Central Government, i.e., 24.11.2016 (for Rs.1000/- denomination notes) and 02.12.2016 (for Rs.500/- denomination notes), even then the same would by no means justify treating of the said amount as the unexplained money of the assessee u/s.69A of the Act. Although, as observed by me hereinabove, the deposit in tranches of the demonetized currency notes by the assessee in her bank account, i.e, after lapse of the specified time period allowed by the Central Government though raises serious doubts, but the same in my considered view would by no means suffice for stamping the same as the assessee s unexplained money u/s.69A - not being able to concur with the view taken by the lower authorities who had failed to come forth with any cogent reason for treating the amount in question as the assessee s unexplained money u/s.69A, thus, set-aside the order of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017, declaring an income of Rs.10,94,470/-. Subsequently, the case of the assessee was selected for scrutiny assessment u/s.143(2) of the Act. 3. During the course of the assessment proceedings, it was observed by the A.O that the assessee during the year under consideration had made cash deposits of Rs.6,80,42,748/- in hrer bank account as under: Name of Bank Bank a/c. No. Total cash deposited during the year Total cash deposited during demonetization period Total demonetized currency during demonetization period Dena Bank, Bhatapara 060913031165 6,80,42,748/- 2,16,63,090/- 1,85,42,500/- On being queried, it was the claim of the assessee that the cash deposits in his bank account were sourced out of the cash-in-hand that was available with her on the respective dates. It was observed by the A.O that though the Central Government vide its notification published in the Official Gazette had allowed petrol pump outlets to receive Rs.1000/- demonetized currency notes upto 24.11.2016 and Rs.500/- demonetized currency notes up to 02.12.2016, but the assessee had continued to deposit the aforesaid demonetized currency even after the aforesaid specified period i.e. up to 30.12.2016, as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the CIT(Appeals) but without any success. 5. The assessee being aggrieved with the order of the CIT(Appeals) has carried the matter in appeal before me. 6. I have heard the ld. Authorized Representatives of both the parties, perused the orders of the lower authorities and the material available on record, as well as considered the judicial pronouncements that have been pressed into service by the Ld. AR to drive home his contentions. 7. On a perusal of the assessment order I find that the A.O had held the amount of Rs.6.86 lacs (supra) as the assessee s unexplained money u/s.69A of the Act for the following reasons: (i) If old currency was available with the assessee, she would immediately have deposited it in her bank account. It is noticed that Rs.1000/- has been deposited after 25/11/16 in five installments where as Rs.500/- has been deposited in bank after 03/12/16 in five installments. (ii) The assessee cannot take the plea that there was rush in bank as it can clearly be seen from the bank statement that the assessee continued to deposit cash in her bank account in the gap of 2-3 days throughout the demonetization period. (iii) As stated above, denomination of closing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t may, a perusal of the assessment order reveals that the A.O had held the aforesaid amount of Rs.6.86 lacs (supra) as the assessee s unexplained money u/s.69A of the Act for either of the reasons, viz. (i) that the assessee had in the guise of sales deposited her unexplained money in bank account; or (ii) that the assessee had received sale proceeds in old denomination currency even after the lapse of the specified time period allowed by the Central Government. 9. After having given a thoughtful consideration to the very basis for making of the addition by the A.O u/s.69A of the Act, I am unable to persuade myself to subscribe to the same. In case, as observed by the A.O, the assessee had in guise of sales deposited her unaccounted money in his bank account, then, the A.O was obligated to have rejected the books of account of the assessee before recharacterizing the corresponding sales as the latters unaccounted money u/s.69A of the Act, which, I find, had not been so done. I, say so, for the reason that while for the A.O had observed that the assessee in the guise of sales had deposited her unaccounted money in the bank account, but despite so observing he had while framing the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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