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2022 (11) TMI 407 - AT - Income TaxUnexplained cash deposits - difference in sales between periods from July – December 2016 and July – December 2015 on the ground that such cash sales are made to unidentifiable persons and the assessee failed to prove the genuineness of the sales and has made substantial cash deposit during demonetization period and the assessee failed to substantiate the source of the cash deposit - HELD THAT:- Merely filing the details such as cash book, ledger, purchase details, VAT returns, etc are not sufficient especially when the assessee had made huge cash sales during the demonetization period as compared to the earlier year during the same period. In our opinion, the matter has not been properly adjudicated in the way the same should have been adjudicated. It is settled proposition of law that the powers of CIT (Appeals) are co-terminus with that of the powers of Assessing Officer. In the instant case, although the AO has categorically asked the assessee to substantiate the huge cash deposits during the demonetization period by giving PAN numbers of so called purchasers, ;the assessee has not filed such details and the learned CIT (Appeals) without verifying the pay in slips along with the bank statements was carried away by the submissions made by the assessee. We deem it proper to restore the issue to the file of CIT (Appeals) with a direction to adjudicate the issue afresh after considering the nature of huge cash deposit made in large number of Rs.2000 currency notes in the bank - Needless to say the CIT (Appeals) shall give due opportunity of hearing to the assessee. The grounds raised by the Revenue are allowed for statistical purposes.
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