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2024 (2) TMI 1292 - AT - Income TaxAddition u/s 69A - cash deposit in bank during demonetization period - as per assessee cash deposits are the amount as originated from the sale of stock - HELD THAT:- The assessee deposited cash by claiming that the amount was originated from the sale of stock. It is never a question that the assessee has never controverted that assessee has in sufficient stock and purchased on the date of announcement of demonetisation on dated 08.11.2016. The assessee sold goods from his shop. Before that date, the assessee was sufficiently covered by the stock. The assessment was completed by the Sales Tax Authority and the turnover and purchased was duly accepted. As further submitted that from the documentary evidence the source, purpose and sequence of event duly established that there was direct nexus of cash deposit in bank account out of sales realization in cash. It is settled position of law that when the ld. AO had not doubted the sales, purchases, stock and gross profit declared by the assessee then the cash deposit out of such sales cannot be doubted. The authority below had treated the normal transaction in respect of business receipt as something unusual and out of the ordinary only as undiscerningly which is against the principle of natural justice.We respectfully, relied on the order of Anand Metal Corporation [2004 (7) TMI 49 - MADRAS HIGH COURT] Assessee’s books was rejected u/s 145(3) for non maintenance of stock register -The assessee claimed that the assessee is dealing with the items which are not possible for her to maintain stock register. The ld. AR respectfully relied in the order of the Hon’ble Jurisdictional High Court in the case of Malani Ramjivan Jagannath [2006 (10) TMI 145 - RAJASTHAN HIGH COURT] We also respectfully followed the order of the Hon’ble Jurisdictional High Court in the case of non maintenance of stock register cannot be the reason for rejection of books of account. The assessee was eligible to prove the stock, the purchased and the assessment order of the Sales Tax Authority. There are no discrepancies on purchase and stock of goods. On mere suspicion the sale of goods cannot be treated u/s 69A of the Act. The ld. DR was unable to submit any contradictory orders / judgments before the bench. Accordingly, the ground of the appeal is allowed. Discrepancy of the stock valuation in survey team with the declared in the books of accounts - assessee filed a retraction letter for non-accepted the valuation of the revenue as assessee in reconciliation placed that the parties had accepted that the goods sale for approval, so, the same goods are not entered into the stock of the assessee and affidavit was also filed during the assessment and appeal proceeding but none of the revenue authorities had rejected the affidavit of the parties - HELD THAT:- In our considered view, the assessee was filed a proper calculation of stock and with the details of approval of goods which are not entered in the stock of the assessee. Accordingly, we set aside the impugned appeal order. The addition of amount is quashed.
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