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TMI Blog2022 (11) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. CIT(A) was right in deleting the addition made u/ s. 68 of I T Act even though assessee had accepted specified bank notes without maintaining the complete account of record of stock, sale of transaction made with the specified bank notes and records of the persons with whom sales have been effected in SBNs towards 'production of doctor's prescription and proof of identity' as mandated by Notification no. S.O. 3408(E) dated 08-11-2016. 2. Whether in the facts and circumstances of the case and in law, the Ld. CIT(A) was right in allowing relief to the assessee without appreciating that vide Notification S.O. 3416(E) dated 09-11-2016 (vide which pharmacies were exempted to accept SBNs) the Central Government had amended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, the addition made u/ s. 68 is justified." 3. There is a delay of 38 days in filing the appeal. In the application for condonation of delay supported by affidavit, the revenue has stated that consequent to Hon'ble Supreme Court decision in the case of UOI v. Ashish Agarwal, Civil Appeal No.3005/2022 dated 4.5.2022, it was held up with substantial number of cases of reopening u/s. 148A and further the approval of Pr.CIT was also received on 4.7.2022 as he was busy in according approval u/s. 148A. Due to this ensuing cascading effect, the filing of appeal was delayed by 38 days and therefore it was prayed that the delay may be condoned. 4. We have heard the rival submissions on the condonation of delay in fling the appeal. Following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's prescription and proof of identity. In response, the assessee submitted that it is dealing in specialised drug meant for mental health and therefore the sales was made only to patients who carry prescriptions issued by Manasa Nursing Home and other Doctors. The assessee also submitted that the said Notification does not mandate to keep the copy of the prescription for record purposes. The AO did not accept the submissions of the assessee and proceeded to treat the cash deposits in the bank accounts out of cash sale as unexplained credit u/s. 68 and levied tax as per the provisions of section 115BBE of the Act. 6. Aggrieved, the assessee preferred an appeal before the CIT(A). 7. Before the CIT(A), the assessee submitted that the cash de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edits. From the above, it can be construed that the Appellant in the instant case offered its explanation regarding the source of the cash sales. However, the Assessing Officer did not give any contradictory findings as regards the explanation offered by the Appellant. The Assessing Officer could reject the explanation offered by the Appellant with reference to any mistakes pointed out from the books of account. Therefore, it is clearly understood that there was no ground for the Assessing Officer to invoke the provisions of Section 68 of the Act in the case of the appellant. In view of the forgoing discussion and taking into consideration of all facts and circumstances of the case it is hereby held that the addition made by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther submitted that the accounts of the assessee are audited and there is no discrepancy found during the audit. It is also contended by the ld. AR that the assessee has produced all the details with regard to the sales including the ledger accounts, cash book, VAT returns etc. during the course of assessment and the AO did not reject the books of accounts of the assessee. The ld. AR drew our attention to the relevant Notification wherein it is stated that for making payments in all Pharmacies on production of Doctor's prescription and proof of identity, however, there is no mandate given that the Doctor's prescription and identity of persons purchasing the medicines need to be kept for record. The ld. AR also placed reliance on the decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that they are not required by law to keep the copy of the prescription for record; hence, they have not maintained it. From this it is very clear that the assessee firm has violated the RBI guidelines and accepted SBN (old notes) during demonetization by doing cash sales. Further, the assessee firm has not been authorized to accept SBN's for cash sales during demonetization period. Furthermore, the assessee has failed to furnish the details of sales made in SBN's (old notes) & Non- SBN." 3.9 In view of the above, it is concluded that the assessee has violated RBI guidelines and accepted the cash sales during demonetization period. Accordingly, the cash sales made and deposited in bank account during demonetization period is treat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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