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2024 (4) TMI 453 - AT - Income TaxAddition of cash deposited during the demonetisation period in bank account - unexplained income - taxation @ 60% as provided u/s. 115BBE - assessee has withdrawn the cash amount from bank and the unused amount of cash was redeposited in the bank account during the demonetization period - HELD THAT:- The unused cash was re-deposited in the bank account during the demonetization period. Assessee has also submitted the other documents and evidences before the assessing officer in response to notice u/s 142(1) of the Act. During the appellate proceedings also the assessee has narrated the same facts and submitted details and documents before the CIT(A), however, we note that both the authorities did not appreciate the documents and evidences submitted by the assessee. We note that in holding a particular receipt as income from undisclosed sources, the faith of the assessee cannot be decided by the revenue on the basis of surmises, suspicious and probabilities of Northern Bengal Jute Co. Ltd. [1967 (1) TMI 80 - CALCUTTA HIGH COURT] The overwhelming numbers of documentary evidences were submitted by the assessee before both the lower authorities, and these documents cannot be brushed aside on the basis suspicious. We note that AO had not specifically identified any specific defects in the purported evidences and documents submitted by the assessee, and also taking note of the fact that the AO has not held that the documents and evidences so submitted by the assessee are bogus. In our opinion the ends of justice would be met, if a net profit rate of 10% is adopted on the cash deposit during demonetization period. Therefore, we direct the assessing officer to make the addition in the hands of assessee to the tune of Rs. 2,50,250/- and should be taxed under normal provisions of the Act and not u/s 115BBE.
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