TMI Blog2022 (11) TMI 407X X X X Extracts X X X X X X X X Extracts X X X X ..... riod 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. - ITA No. 99/Hyd/2021 - - - Dated:- 26-9-2022 - SHRI RAMA KANTA PANDA , ACCOUNTANT MEMBER AND SHRI LALIET KUMAR , JUDICIAL MEMBER Appellant By : Shri K. A. Sai Prasad , C. A. Respondent By : Shri Kumar Aditya ( D. R. ) ORDER Per Shri Rama Kanta Panda , A. M. : This appeal filed by the Revenue is directed against the order dt.11.11.2020 of the learned Commissioner of Income Tax (Appeals)-11, Hyderabad relating to Assessment Year 2017-18. 2. The facts of the case, in brief, are that the assessee is a company engaged in the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 395 36 August 2015 31,42,464 Aug., 2016 58,52,523 86 Sept., 2015 41,97,344 Sept., 2016 57,24,110 36 Oct., 2015 19,53,192 Oct., 2016 56,15,706 188 Nov., 2015 47,12,257 Nov., 2016 113,67,967 141 Dec., 2015 68,25,610 Dec.,2016 87,08,625 28 Total 2,45,41,608 Total 4,23,34,326 72 He further noted that the assessee has made cash sales to unidentifiable persons and failed to prove the genuineness of the sales. The assessee could not explain the source of huge cash deposit during the demonetization period from 9.11.2016 to 30.12.2016. He, therefore, made addition of Rs.1,77,92 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h to the observations of the Assessing Officer while making the addition of Rs.1,77,92,718. Referring to the order of the learned CIT (Appeals), he submitted that the CIT (Appeals) has deleted the addition based on the submissions made by the assessee which are general in nature. He submitted that in the instant case the assessee has not discharged the primary onus cast on it by providing the name, PAN and address of the persons to whom cash sales are made. Referring to the bank pay in slips, copies of which are placed at pages 3 to 7 of the Paper Book, he submitted that when large number of Rs.2000 notes were deposited during the demonetization period, which were not easily available in the country, at that particular time, it was incumbent upon the CIT (Appeals) to obtain from assessee, the names of the so called purchasers who had withdrawn such amounts from the bank in new currency notes and purchased the goods from the assessee by paying such cash. Since there is substantial increase in the turnover during the demonetization period as compared to the cash sales in the corresponding period of preceding year, therefore, the learned CIT (Appeals) without appreciating the facts pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons of which have already been reproduced in the preceding paragraphs. It is the submission of the ld. DR that when large number of Rs.2000 notes were deposited in the bank account during the demonetization period, the assessee was duty bound to give the names of persons to whom he has sold such goods and who in turn has given such large number of Rs.2000 notes that were deposited in the bank account. It is the submission of the learned counsel for the assessee that out of total deposit of Rs.2,10,80,000 during the period from 9.11.2016 to 30.12.2016 only an amount of Rs.17,00,000 has been deposited in specified notes and the remaining deposits were made in other than specified notes. It is also the submission of the learned counsel that when the VAT returns were filed depicting such high turnover and the purchase and closing stocks are not disputed by the Assessing Officer, therefore, he cannot doubt the sales merely on the ground that the assessee has made cash sales and could not give the name, address and PAN number of the so called purchasers. 10. We find the order of the learned CIT (Appeals), in the instant case, is not on sound reasoning and without appreciation of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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