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TMI Blog2025 (4) TMI 1445X X X X Extracts X X X X X X X X Extracts X X X X ..... ed CIT (A) has erred on facts and circumstances of the case in adding Rs. 1,19,70,500/- on account of cash deposit in to bank u/s 69A of the act without any justification. 2. That on the facts and circumstances of the case and in law, the order passed by CIT (A) New Delhi (hereinafter referred to as CIT (A), is bad in law. 3. That on the facts and circumstances of the case and in law, the Ld. CIT (A) was not justified in upholding the action of AO of adding Rs. 1,19,70,500/- on account of cash deposit in to bank u/s 69A, when assessee has duly discharged the burden cast on it under the law." 2. The assessee has raised the above grounds of appeal raising a solitary issue of addition sustained by the ld. CIT (A) under section 69A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith Kotak Mahindra Bank and Canara Bank, the assessee submitted that it generated cash sales during the year and assessee received cash from its retail customers and any retail customers deposited cash more than Rs. 2 lakhs, the assessee submitted that it deducted the TCS and deposited the same. Further assessee submitted a comparative month-wise sale made by the firm from April 2016 to 08.11.2017. The AO, upon analyzing the comparative statement submitted by the assessee, observed that during the pre-demonetization period, assessee has deposited only Rs. 93,448/- as cash sales and during demonetization period, assessee has deposited Rs. 90,00,843.92 i.e. sales of October 2016 and November sales upto 08.11.2017. With the above information, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notes in the Notifications related to demonetization, is unexplained. Further, on examination of the appellant's ITRs, it is seen that he is filing ROI from A.Y. 2010-11. Further, appellant has not provided any cash sales data of later years to substantiate its stand. 4.3.4. The appellant has also argued that the cash deposits are explained by the books, but in the appeal proceedings has not submitted the ledger A/cs, cash book. invoices, details of parties etc to which the said cash sales were made. The AO on the other hand has noted that the majority of cash sales were shown only in October 2017 and first week of November 2017, with no explanation/cause for this sudden peak in cash sales. Cash deposited before the demonetization pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... increased in FY 2016- 17 mainly due to the distributorship of the major business houses. During October and November being the festive season, it is a particular reason for increase in cash sales. He submitted that the above factual issues were submitted before the ld. CIT (A) and ld. CIT (A) has rejected the same. He prayed that assessee has deposited during demonetization period the cash sales recorded by the assessee out of festival season. He prayed that the addition made by the AO is unjustified and deserves to be deleted. 8. On the other hand, ld. DR of the Revenue brought to our notice page 4 of the assessment order and submitted that assessee itself submitted a comparable chart as per which assessee had average cash sales during pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d cash sales more than previous year due to increase of its business during current assessment year due to its being appointed as distributorship of two sales houses, namely, M/s. Super Gold Suiting Pvt. Ltd. and Bhilwara, Rajasthan. The sales have increased mainly during October 2016 and November 2016 and it has recorded Rs. 43.52 lacs and Rs. 85.53 lacs respectively. The assessee has deposited Rs. 1,49,41,400/- during the year and cash deposited before demonetization period is Rs. 17,63,800/- It is fact on record that assessee has recorded cash sales even after 08.11.2016. The assessee has recorded from 01.11.2016 to 08.11.2016 Rs. 46.48 lacs whereas the whole month assessee was recorded at Rs. 85.53 lacs. Therefore, it is fact on record ..... X X X X Extracts X X X X X X X X Extracts X X X X
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