9911796707
TMI Blog2024 (11) TMI 1114X X X X Extracts X X X X X X X X Extracts X X X X ..... etely overlooked the comparative figures of sales vis- -vis cash sales as also the percentage of cash sales going down during the year. There appears no abrupt jump in the quantum of cash sales during the year under consideration. The reasons for keeping sufficient cash in hand by a widow lady running a retail liquor business cannot be brushed aside without any cogent reason. Moreover, the assessee was fair enough to disclose almost 50% of the impugned sum under PMGKY rather than squabbling over it also. The amount of cash kept at home which is also to be evident from one seized paper during survey could not be considered unreasonable considering the nature of business. It is also not disputed that the accounts of the assessee have been con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se are that the AO found that the assessee had deposited cash of Rs. 92,24,000/- between 09.11.2016 to 30.12.2016 in her bank account with Vijaya Bank during the demonetization period. A survey u/s. 133A of the Act was conducted in this case on 29.03.2017 and during the survey, it was found that the appellant had deposited an amount of Rs. 44,05,000/- in old demonetized currency, out of which an amount of Rs. 15,50,000/- had been declared by the appellant in PMGKY 2016 scheme and balance old currency amounting to Rs. 29,15,468/- was claimed to be deposited out of the cash in hand as on 08.11.2016. The AO further found that while the assessee claimed during survey that the source of this was from cash in hand, the opening cash in hand for FY ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash book being produced during scrutiny proceedings has been fabricated to match the figures being claimed by the assessee to justify the cash deposited during demonetization period. The cash trail being produced now could not be accepted, as they have been manipulated to match the figures of the cask book being presented. If there was no record of the cash expenses on 29.03.2017 (i.e. during the survey and survey proceedings), then the figures being produced presently could not be relied upon. It clearly reflected that the cash book had been manipulated, and therefore the cash book could not be accepted. He went to stated that during the survey proceedings, the assessee failed to submit the source of month wise cash receipts with document ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he books of accounts had not been finalised at that time. He argued that the cash deposits had been duly accounted for in the books of accounts and hence the addition made be deleted. It is submitted that the assessee merely admitted that approximately Rs 35 lakh was deposited in old notes and had accordingly disclosed Rs 15 lakh under PMGKY. The said deposits were stated to be out of cash in hand and small cash sales by staff. She could not reconcile the source of deposit during survey and surrendered a part of it. It was stated that the assessee was engaged in retails sale of liquor mostly in cash or card swipe. Books of account were not stated to be updated. She has referred to the reply dated 7.12.2019 as made to the AO in para g) as ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk. In para (j) it was stated that as per one seized document during survey, there was one cash summary which showed closing cash balance of Rs 29,15,468/- on 8.11.2016.Since no adverse view was taken of it, veracity was never doubted. Evidently, the survey party had prima facie accepted this cash balance. It is further submitted in other paras of the said reply that cash book was not updated which did not imply non-maintenance of books of account. There was no question of any manipulation of books of account later. Proper books of account were duly maintained by the concern duly audited by Chartered Accountant. Moreover, the amount could not be treated as unexplained u/s 68 as it reflects sale proceeds only and could not be considered unex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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