9911796707
TMI Blog2025 (1) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... by way of additional evidence are very much necessary to adjudicate the issue before us. Accordingly, we admit the same. If the AO had doubted the claim of availability of cash in the books of the assessee, which was claimed to have been generated out of cash sales, it is necessary for him to conduct proper enquiries to find out the veracity of the claim made by the assessee. Without conducting necessary enquiries, the AO should not take any adverse view. Since the AO has not conducted any enquiry, we are of the view that the AO has made the impugned addition of Rs. 3.05 crores u/s. 69A of the Act under suspicion, which is not permitted under the law. There is a lacunae on the part of the assessee also. We noticed that the assessee did n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scrutiny. It was noticed that the assessee has deposited Rs.3.00 crores in Saraswat Co-operative Bank Ltd and Rs.50,06,000/- in Deccan Merchants Co-operative Bank Ltd cash during the demonetization period. The aggregate amount of deposits made by way of cash was Rs.3,50,06,000/-. As per the requirement of Cash demonetization scheme, the depositors have to report the details of cash deposited in their bank account in a prescribed form. According to AO, the assessee has reported the cash deposits made into Deccan Merchants Co-op. Bank Ltd., only in the declaration form 2016 and did not report the cash deposited in Saraswat Co-operative Bank. The AO further noticed that the cash deposit made in Deccan merchants Co-op. Bank Ltd., was wrongly r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ared the deposit amount of Rs.50,06,000/- in the cash deposit declaration form filed with the Income tax department and hence there was no necessity for the assessee to report a wrong amount in the return of income. The Ld.AR further submitted that the assessee has also reported the cash deposit of Rs. 3 crores made with Saraswat Co-operative Bank Ltd., by way of a separate declaration, but it was omitted to be considered by the AO. Accordingly, the Ld.AR submitted that the AO should not have taken adverse view in view of one discrepancy noted by him. He submitted that these mistakes, any way, will not affect the determination of total income and hence, the AO should not have given much importance to it. He further submitted that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submitted that the order passed by Ld.CIT(A) need not be interfered with. 6. In the rejoinder, the Ld.AR submitted that the assessee was having sufficient quantity of physical stock of gold, silver, diamonds and other stones. However, the details of physical stock of above items could not be furnished before the tax authorities by inadvertence. The Ld.AR submitted that the assessee is furnishing the details of stock summary before the Tribunal by way of additional evidences along with a petition requesting it to admit the additional evidences, as these details are essential to adjudicate the issue contested before the Tribunal. Accordingly, the Ld A.R prayed for admission of the additional evidences. He submitted that the stock summary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out of cash sales, it is necessary for him to conduct proper enquiries to find out the veracity of the claim made by the assessee. Without conducting necessary enquiries, the AO should not take any adverse view. Since the AO has not conducted any enquiry, we are of the view that the AO has made the impugned addition of Rs. 3.05 crores u/s. 69A of the Act under suspicion, which is not permitted under the law. 9. At the same time, there is a lacunae on the part of the assessee also. We noticed that the assessee did not furnish details of physical stock before the AO, which is essential to prove the claim of cash sales. As noted earlier, the assessee could make cash sales only of gold, silver, precious stones etc., only if it was having suffi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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