TMI Blog2022 (3) TMI 896X X X X Extracts X X X X X X X X Extracts X X X X ..... 17 also deals with prohibition on holding, transferring or receiving specified bank notes. Section 5 states that On and from the appointed day, no person shall knowingly or voluntarily, hold, transfer or receive any specified bank note . We therefore, find that the specified bank notes can be measured in monetary terms since the guarantee of the Central Government and the liability of Reserve Bank of India does not cease to exist till 31.12.2016. In view of the above, the contention of the Ld.DR, treating the receipt of SBNs from cash sales as illegal and thereby invoking the provisions of section 69A is not valid in law. Therefore, we dismiss this ground of the Revenue. Admission of additional evidences - As argued CIT(A) ought to hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the order of Commissioner of Income Tax (Appeals) [CIT(A)], Visakhapatnam in ITA No.10605/2019-20/CIT(A)-1/VSP/2020-21 dated 14.09.2020 u/s 143(3) of the Income Tax Act, 1961 (in short Act ) for the Assessment Year (A.Y.) 2017-18 and the cross objections are filed by the assessee. The revenue raised the following grounds of appeal : 1. The order of the ld. CIT (A) is erroneous both on facts and in law. 2. The Ld.CIT (A) erred in holding that section 69 does not apply to sale of shares when it is resulting in increase of capital of the assessee in the form of exempted income which is nothing but explained investment. 3. The Ld. CIT (A) erred in accepting the cash sales shown by the assessee dafter 08/11/2016 in demonet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il construction and jewellery. The assessee filed his return of income for the A.Y.2017-18 on 07.11.2017 admitting total income of ₹ 13,62,040/-. The case was taken up for scrutiny and statutory notices were issued to the assessee. In response to the notice, the assessee has not responded properly and in the absence of detailed reply, the AO assessed the total income of the assessee at ₹ 1,51,26,623/-. 3. Aggrieved by the order of the AO, the assessee filed appeal before the CIT(A). The Ld.CIT(A) considering the evidences produced by the assessee deleted the additions made by the AO. 4. Aggrieved by the order of the Ld.CIT(A), the revenue is in appeal before us. The Ld.DR referred to page No.5, para No.6.1.2 of the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion date, wherein, specified bank notes are treated as illegal. The Ld.DR argued that the sales and cash deposited in the bank are liable to be treated as unexplained money u/s 69 of the Act. 8. On the other hand, the Ld.AR argued that since the assessee had cash balance as on the date of demonetisation i.e. on 10.11.2016, provisions of section 69A cannot be applied. 9. We have heard both the parties and perused all the documents on record. We find that there was sufficient cash balance with the assessee as detailed in page No.30 of the paper book. The Specified Bank Notes (Cessation of Liabilities) Act, 2017, defines appointed day vide Section 2(1)(a). As per Section 2(1)(a), appointed day means the 31st Day of December 2016. Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued that the income was disclosed in the return of income. The assessee has produced before the Ld.CIT(A) only documents to substantiate the claim of assessee. The Ld.AR also argued that no additional evidence were adduced before the Ld.CIT(A). 12. We find from the Assessment Order that the AO has provided various opportunities to the assessee to explain the details of share transactions and provide documents in support of his claim, wherein, the assessee failed to produce any cogent evidence and information in support of his claim. However, the assessee produced documents before the Ld.CIT(A). That being the position, the Ld.CIT(A) must have remitted the matter back to AO for examination by applying the provisions of Rule 46A. However w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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