9911796707
TMI Blog2024 (11) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... , there has been substantial increase in the Cash Sales of the assessee in all the three Financial Years. Assessee claimed that these were the months of Festivals. Therefore, AO s allegation that assessee has shown inflated cash sales during October, 2016 to deposit his unaccounted cash is unsubstantiated. Because, consistently there is increased cash sales as compared to other months. It is also a fact that assessee s Books of Accounts are audited. The Audit Report along with Profit and Loss Account, Balance Sheet and its Annexures were filed before the Assessing Officer. AO has not pointed any defect in these Books of Accounts or Audit Reports. CIT(A) has also not pointed out any defect in the Audit Report. Assessee had also filed copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of cash deposited in bank account. 2. On the basis of the facts and in the circumstances of the case the CIT (A) is not justified in granting only partial relief and confirming the addition to the extent of Rs. 34,30,812/- on account of cash deposited in bank account, by holding that out of the said cash deposits of Rs. 67,86,500/- the appellant has paid only Rs. 33,55,688/- to M/s. Sapat International, particularly when almost entire cash deposits in the bank account are paid to M/s. Sapat International for purchase of goods. 3. On the basis of the facts and in the circumstances of the case the CIT (A) is not justified in confirming addition on the basis of incorrect facts, suspicious and prejudicial mind. Therefore, the same may please ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- by making addition of Rs. 67,86,500/- u/s.69A on account of unexplained cash deposit in Janta Co-operative Bank Ltd., Malegaon during demonetization period and completed assessment u/s. 144 of the Act. 2.1 The Assessing Officer in the assessment order in paragraph 4 analysed the sales of the assessee as under : Particulars Amount in INR Average monthly Cash Sale for F.Y. 2016-17 Rs. 87,88,200/- Average monthly Cash Sale for F.Y. 2016-17 (excluding the cash sale of October 2016) Rs. 78,51,356/- Hike in cash sale during the Month of Oct 16 over the average annual sale (Rs. 1,90,93,480/- - Rs. 87,88,200/-) = Rs. 1,03,05,280/- @117.26% Hike in cash sale during the Month of Oct 16 against the average sale for 11 months of F.Y. 2016-17 (exclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be deleted. Submission of ld.DR : 5. The ld.DR for the Revenue relied on the order of the Assessing Officer and ld.CIT(A). Findings Analysis : 6. We have heard both the parties and perused the records. In this case, AO has made addition of Rs. 67,86,500/- which was cash deposited by the assessee in Janata Co-operative Bank, Current Account on 11.11.2016 and 15.11.2016 in the form of Demonetized Currency. 6.1 It is a fact that assessee is a Wholesaler. He is a Wholesaler for Sapat Brand Tea. During the assessment proceedings, assessee had explained that the amount deposited was out of the Opening Cash Balance and Sales made. However, AO rejected assessee s submission and made the addition. We have perused the monthly cash sales filed by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposited Rs. 13,51,000/- and Rs. 50,000/- cash; on 04.04.2015 assessee has deposited cash twice in the same day. Then, on 06.04.2015 Assessee has deposited Rs. 7,09,000/-; on 07.04.2015 Assessee has deposited Rs. 12,24,000/-. Similarly, on every alternate day there were transactions of cash deposits made by the assessee. 7. Now coming to the F.Y.2016-17 on 02.04.2016, there were cash deposits on three occasions in a day i.e. Rs. 8,40,000/-, Rs. 2,00,000/- and Rs. 2,60,000/- totaling to Rs. 13,00,000/-. Similarly, on 05.04.2016, there were cash deposits of Rs. 7,79,000/- and Rs. 42,000/- totaling to Rs. 8,21,000/-. On 07.04.2016 cash deposits of Rs. 9,63,000/- and Rs. 2,30,000/-. Thus, there were regular cash deposits even before the Demon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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