2025 (3) TMI 45

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..... act that the source cash as enduring to the Assessee from its business activities, further it is not the case of the A.O. that the inflow of cash from any activity other than business of the Assessee. A.O. failed to look into the history of the Assessee wherein it is found that the Assessee used to deposit the cash in the bank in the months preceding demonization. CIT(A) has committed error in upholding the addition made by the A.O., accordingly, we delete the addition - Appeal filed by the Assessee is allowed.
Shri Yogesh Kumar U.S., Judicial Member And Shri Avdhesh Kumar Mishra, Accountant Member For the Assessee : Sh. K. Sampath, Adv, Sh. V. Rajkumar, Adv. For the Revenue : Sh. Rajesh Kumar Dhanista, Sr. DR ORDER PER YOGESH KUMAR .....

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..... itted that the accounts of the Assessee have been audited and the cash of higher order has been habitually retained by the Assessee in the past many years, further submitted that books of accounts of the Assessee has been accepted by the A.O. and no defect or discrepancy of any sort more particularly in the purchase and sales and stocks have been pointed out by the A.O. Further the A.O. has also not denied the fact that the cash as enduring to the Assessee from its business activities, the A.O. has also ignored the fact that there were cash deposits in the bank in the month preceding to demonetization. The Ld. Counsels for the Assessee relying on plethora of Judgments sought for allowing the Appeal. 5. Per contra, the Ld. Departmental Repr .....

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..... see have been audited and the cash of higher order has been usually retained by the Assessee in the past many years. The Assessee has also demonstrated the cash withdrawals during the various months in the year of demonetization which are reproduce as under:- Month wise Opening Cash in hand (Rs.) Cash sales (Rs.) Cash deposited in Bank (Rs.) Cash withdrawal from Bank (Rs.) Closing cash in hand (Rs.) Apr-16 1829969 1100 0 2200000 3610058 May-16 3640058   70000 1800000 5034172 Jun-16 5034172   0 1000000 5705046 Jul-16 5705046   250000 850000 5934114 Aug-16 5934114   0 1000000 4720066 Sep-16 4720066   0 1000000 4273339 Oct-16 4273339   0 .....

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