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TMI Blog2022 (12) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... in the business of running a cold storage had filed its return of income for A.Y.2017-18 on 27.01.2018, declaring an income of Rs. Nil. Subsequently, the case of the assessee was selected for scrutiny assessment u/s.143(2) of the Act. 3. During the course of assessment proceedings, it was observed by the A.O that the assessee had during the demonetization period deposited an amount of Rs. 38.55 lac and Rs.8 lac in old demonetized currency notes of Rs.500/- and Rs.1000/-, respectively, in its bank accounts with Axis Bank and Bank of Baroda. The details of the cash deposits made by the assessee during the demonetization period are as under: Sl. No. Name of the Bank Account number Date of deposit Total amount deposited (in Rs.) 1. Axis Bank Ltd. 910020017065122 10.11.2016 800000/- 2 10.11.2016 3055000/- 3. Bank of Baroda 13460200011173 18.11.2016 800000/- Total Rs.46,55,000/- On being queried about the source of the aforesaid cash deposits, it was the claim of the assessee that the same were made out of the cash in hand that was at the relevant point of time available as its business receipts. The assessee in support of its aforesaid claim filed with the A.O copi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the lower authorities and the material available on record. 7. At the very outset of the hearing of the appeal the Ld. Authorized Representative (for short 'AR') took me through an application filed by the assessee for admission of additional evidence u/s. 29 of the Income Tax Appellate Tribunal Rules, 1963. On a perusal of the said application, it transpires that the assessee had placed on record copies of the cold storage rent receipts for the year under consideration, Page 1 to 151 of APB. The Ld. A.R referring to the aforesaid documents submitted, that as the same would substantiate the availability of the cash in hand with the assessee out of the rental receipts generated in the normal course of its business of running of cold storage during the year under consideration, therefore, the same would have a strong bearing on the adjudication of the core issue involved in the present case. The ld. A.R on being queried that as to why the said documents were not produced before the lower authorities, submitted, that the observation to the said effect of the lower authorities were absolutely incorrect and perverse. Elaborating on his said contention, it was submitted by the ld. A.R t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness. My aforesaid observation is fortified by the very fact that the A.O on 15.12.2019 (i.e. on Sunday) at 4:12 p.m allowing insufficient time to the assessee had not only called upon it to furnish the aforesaid details on 16.12.2019 by 12:00 p.m, but thereafter had hushed through the matter and framed the assessment vide his order passed on 16.12.209 (at 4:28 p.m). Also, I find that as stated by the Ld. AR, and rightly so, the assessee had in the course of the proceedings before the CIT(Appeals) uploaded the cash books, rent details etc. 9. Considering the totality of the facts involved in the present case, I am of the considered view that the assessee was not afforded sufficient opportunity by the A.O to substantiate its claim that the cash deposits of Rs. 46.55 lac (supra) were sourced out of its cold storage rental receipts. On the basis of my aforesaid observations, I am of the considered view that the copies of the rent receipts that have been filed as additional evidence before me, which corroborates the assessee's claim and would have a strong bearing on the adjudication of the issue involved in the present appeal, merits admission. 10. As observed by me hereinabove, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favor with the view taken by the A.O had upheld the addition. 12. Having given a thoughtful consideration to the issue in hand, I find certain peculiar facts attending to the case of the present assessee before me. As observed hereinabove, it was the claim of the assessee that the cash deposits of Rs.46.55 lacs (supra) made in its bank accounts during the demonetization period were sourced out of its business receipts, i.e., cold storage rentals that were duly recorded in its books of account. On the contrary, the A.O for the aforesaid reasons had rejected the claim of the assesee and had held the entire amount of Rs.46.55 lacs (supra) as an unexplained cash credit u/s.68 of the Act. Ostensibly, the A.O had though rejected the assessee's claim that the cash deposit of Rs.46.55 lacs (supra) was sourced out of its business receipts, but on the other hand he had accepted its returned income, and thus without rejecting the books of account of the assessee had framed the assessment vide his order passed u/s.143(3), dated 16.12.2019. In sum and substance, the A.O though had rejected the assessee's claim that the cash deposits of Rs.46.55 lacs (supra) were sourced out of the cold storag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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