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TMI Blog2025 (4) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... s.69A of the Act. 2. Learned CIT(A) has erred in law and on the facts of the case in confirming the action of learned AO in invoking the provisions of S.115BBE of the Act. 3. Learned CIT(A) has erred in law and on the facts in confirming the action of the AO in charging interest u/s.234A/B/C/D. 4. Learned CIT(A) has erred in law and on the facts in confirming the action of AO in initiating penalty u/s.271AAC of the Act which is wholly unsustainable in law and on facts of the case." 3. As per the verification of the data, the Revenue Authorities found that during the demonetisation period, the assessee deposited Rs.21,45,000/- in his various accounts. The assessee filed return of income for the Assessment Year 2017-18 declaring in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued letter under Section 133(6) of the Act to all the purchasers but none has submitted any details. The Assessing Officer therefore made addition of Rs.22,39,500/- as per Section 59A of the Act as unexplained money as well as assessed the total income of the assessee under Section 115BBE of the Act at the rate of 60%. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). the CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the source of cash deposit in different Bank account is from Gold and the details of Gold sold to different purchasers alongwith their confirmation was submitted to the Assessing Officer during the assessment proceedings. However, the Assessing Officer, in h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antiate cash deposits made during the specified period. - Responses to Notices: - Comprehensive responses to notices under Sections 142(1) and 143(2), addressing the AO's queries with supporting documents. 3. Legal Grounds - Onus of Proof: - The taxpayer discharged the initial burden of proof by furnishing details of transactions, including purchaser identities and evidence of transactions. - The onus shifts to the Assessing Officer to disprove the taxpayer's claims once adequate documentation is provided. - Section 133(6) Notices: - The AO's reliance on non-responses from purchasers under Section 133(6) to reject the transactions' genuineness is misplaced. - The taxpayer cannot be penalized for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound, the Ld. AR submitted the following :- "The amendment to Section 115BBE of the Income Tax Act prescribing a higher tax rate of 60% was introduced as part of the Taxation Laws (Second Amendment) Bill, 2016, and came into effect from 01.04.2017. The judgment in the case of S.M.I.L.E Microfinance Limited categorically held that the amended rate cannot be applied retrospectively to transactions occurring before this date. Specifically, transactions carried out during the demonetization period (08.11.2016 to 31.12.2016) fall under the earlier provision, where a tax rate of 30% was applicable. The court emphasized that retrospective application of the amendment violates the principle of legal certainty and fairness. As the transactions in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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