TMI Blog2023 (4) TMI 735X X X X Extracts X X X X X X X X Extracts X X X X ..... ove narration of the factual panorama reveals that the assessee was having sufficient capital balance of partners and opening cash in hand. After meeting certain expenses incurred in cash, the assessee deposited Rs.16.81 lakh in its bank account, still leaving balance of cash in hand on 30-12-2016, being, the last day of demonetization scheme at Rs.3,86,991/- and such balance at the end of the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s against the confirmation of addition of Rs.9,81,000/- towards the cash deposited during demonetization period. 3. Briefly stated, the facts of the case are that the assessee is a partnership firm engaged in the business of development of properties. Return was filed declaring total income at Rs.71,690/-. During the course of assessment proceedings, the Assessing Officer (AO) observed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation period. Source of such cash was explained to be from normal business operations. It is seen that opening cash in hand as on 01-04-2016 stood at Rs.13,64,991/-. The assessee furnished its return for the immediately preceding assessment year 2016-17 on 16-10-2016, i.e. much prior to the demonetization scheme effective from 09-11-2016. Such return was accompanied by audited financial accounts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of the year stands at Rs.2,55,06,344/- as against the last year s closing balance of capital at Rs.2,55,68,286/-. Detailed copies of partner s current and fixed capital accounts have been annexed to the balance sheet in Note No.4, which shows that the partners had made substantial capital contributions to the firm. Closing cash in hand stands at Rs.3,74,580/- The above narration of the factual p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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