9911796707
TMI Blog2024 (12) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... deposits. Accordingly, the addition made u/s 68 of the Act is directed to be deleted, and the ground of appeal of the assessee is allowed. Application of Section 115BBE and initiation of penalty u/s 271AAC are consequential in nature. Since the addition u/s 68 has been deleted, these grounds are also allowed in favour of the assessee. - Shri T.R. Senthil Kumar, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member For the Assessee : Ms. Urvashi Sodhan, AR For the Revenue : Shri b.P. Srivastava, Sr.DR ORDER PER MAKARAND V. MAHADEOKAR, AM: This appeal by the assessee is directed against the order dated 11/07/2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posited Rs. 16,50,000/- in cash in the Prime Co-operative Bank account during the demonetization period. The explanation provided by the branch manager indicated that this account was operated by MSB Educational Institute. 3.1. The AO scrutinized the assessee s cash book and noticed that on 08.11.2016, a total cash receipt of Rs. 15,60,800/- was recorded, purportedly towards tuition fees, bus fees, term fees, activity fees, development fees, and sports fees and the closing cash balance on 08.11.2016 was Rs. 14,84,376/-, which was considered exceptionally high and unexplained. The AO also noted that the average cash balance during the year fluctuated between Rs. 10,000/- to Rs. 3,00,000/-, concluding the high cash balance as of 08.11.2016 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing that the assessment order passed U/s 147 r.w.s. 144 r.w.s. 144B of the Act is Valid. The assessment order passed U/s 147 r.w.s. 144 r.w.s. 144B of the Act is bad-in-law as statutory notice U/s 143(2) of the Act was not issued. 2. The Ld. CIT (A) has erred in law and on facts of the appellant's case in confirming the order of the Ld. AO of making addition of Rs. 14,53,000/- on erroneous plea that it is an unexplained cash credit U/s 68 of the Act. 3. Both the lower authorities have erred in law and on facts of the appellant's case in holding that cash deposited in bank is unexplained. 4. The charging income tax U/s 115BBE of the Act on addition made U/s 68 of the Act is not justified. 5. The initiation of penalty proceedings u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and partial information was provided to the AO. The AR took us through the paper book and explained the details submitted to AO vide letter dated 10-02-2022. According to the said details the assessee submitted the complete list of fees received, amounting to Rs. 19,82,350/-, in the tabular format giving following details:- 1. Date of Receipt 2. Receipt No. 3. Name 4. Fee Amount 5. Standard 6. Address 5.2. The AR also explained the receipts with the help of cash book and month-wise analysis of fees received, cash deposited in bank with comparative details of earlier years. 6. The Departmental Representative (DR) appreciated the detailed submission of the AR and requested to set aside the order and remand the matter back to the file of AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these details were made available to the AO vide letter dated 10/02/2022, and the AO had sufficient opportunity to verify the same. 7.1. The CIT(A) relied on judicial precedents, such as, Mangilal Jain v. ITO (315 ITR 105) and Kale Khan Mohammad Hanif v. CIT (50 ITR 1) to justify the addition under Section 68 of the Act. These decisions held that the onus is on the assessee to prove the genuineness of credits appearing in its books of accounts. However, the facts of the present case are distinguishable. Unlike in the cited cases, the assessee here provided substantial documentary evidence to explain the source of the cash deposits. The details submitted by the assessee, including student-wise fee records and corroborating documents, demons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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