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TMI Blog2025 (1) TMI 1060X X X X Extracts X X X X X X X X Extracts X X X X ..... ethora of documents and evidences before the AO as well as before the CIT(A), to prove genuineness of the cash deposit in the bank account, which were not appreciated by both the lower authorities. AO has not refuted or discredited these evidences and documents. AO does not mention why he is not accepting these evidences. On the contrary, the assessing officer has just brushed aside these evidences without even a word on why they are not acceptable. It is a well settled Law that when an assessee has all the possible evidence in support of its claim, they cannot be brushed aside based on surmises. Hence, we are not inclined to accept the contention of the Assessing Officer in any manner and hence the addition so made is deleted. Hence this g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice u/s 143(2) was issued by the Income-tax Officer, Ward 2(4), Porbandar, on 09.08.2018, through ITBA and accordingly duly sent to the assessee on e-filing account of the assessee. 4. In response to these notices, the assessee submitted his reply before the assessing officer, along with following documents and evidences, Viz:(i) Copy of ITR and Ack. for A.Y. 2017-18, (ii) Copy of Computation of Income, (iii) Bank statement and (iv) Letter of Authority. The assessing officer, also issued further notices to the assessee to produce relevant evidences regarding cash deposit made during demonetization period. In response, the assessee submitted his reply before the assessing officer on 25.10.2019, along with evidences, such as, Balance she ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal before the Ld. CIT(A), who has confirmed the action of the assessing officer. The Ld. CIT(A) observed that assessee has failed to prove the genuineness of the cash deposited in the bank account. The Ld. CIT(A) has also held that assessee has failed to prove the genuineness of cash received from debtors and the cash deposited in the bank account. Therefore, ld. CIT(A) confirmed the addition made by the assessing officer. Aggrieved by the order of the ld. CIT(A), the assessee is in further appeal before us. 7. Learned Counsel for the assessee, vehemently argued that the assessee, in the previous years, has been depositing the cash received from Customers, in the bank account, in the same pattern, as the assessee, deposited the cash in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the ld CIT(A) and other materials brought on record. We find that assessing officer, has failed to appreciate the fact that the assessee has deposited a sum of Rs. 22,78,500/-, which is from the receipt of money from debtors and opening cash on hand available in the Balance sheet. The assessee submitted the Balance sheets for assessment years 2015-16, 2016-17, 2017-18, before the assessing officer and cashbook for the assessment years 2015-16, 2016-17, and 2017-18, wherein we find that adequate opening cash balance is available. We also note that assessing officer failed to appreciate the fact that a sum of Rs. 22,78,500/-, which is already recorded in the books of accounts, being the money realized from the debtors and therefore invok ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sheet for F.Y. 2015-16, relevant to A.Y.2016-17, on page 2 of the paper book, where sufficient cash balance is also shown. The assessee also submitted balance sheet for F.Y. 2016-17, relevant to A.Y. 2017-18, on page 3 of the paper book, where opening cash balance is shown. The point that had to be examined by the assessing officer was whether what was disclosed in the books of accounts was also disclosed in the returns filed by the assessee. If it was not disclosed, then possibly the assessing officer could have reasons to believe that the cash deposits reflected in the books of accounts may have escaped assessment. However, no effort appears to have been made by the assessing officer to examine the returns filed by the assessee in asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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