9911796707
TMI Blog2023 (8) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act on 29-12-2019. The grounds taken by the assessee read as under: "1. The Respectable Commissioner of Income Tax, Madurai-1 was not justified while passing the order u/s. 250 of the Income Tax Act dated 28/12/2022 for the Assessment year 2017-18 dismissing the claim of appellant allowings SBN Rs. 11823000/- after 08/11/2016 for exchange by the persons other than banking company. 2. The order of the learned CIT(A) is bad and erroneous in law and against the principles of natural justice. 3. The learned CIT (A) erred in not considering the replies filed by the appellant in proper perspective. 4. The learned CIT (A) failed to appreciate the fact that the cash deposits into the bank, made by the appellant after 08/11/2016 were ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orks and made substantial sales during festival season. The cash was collected from debtors during festival season which was deposited into bank accounts and therefore, impugned additions as made by lower authorities u/s 68 are unsustainable. Reliance has been placed on the decision of SMC Bench of this Tribunal in the case of Mrs. Umamaheswari Vs. ITO in ITA No.527/Chny/2022 dated 14-10-2022; the decision of SMC Raipur Bench in Rahul Cold Storage Vs. ITO in ITA No.123/RPR/2022 dated 29-11-2022 as well as another decision of co-ordinate Bench of Bengaluru Bench in ITO Vs M/s. Manasa Medicals in ITA No.552/Bang/2022 dated 31-10-2022. The copies of the orders have been placed on record. The Ld. Sr. DR, on the other hand, justified impugned ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would not be accepted as satisfactory explanation to explain the source of cash deposit. The assessee was prohibited to deal with SBN after 08-11-2016, other than for exchanging the same at banks. Accordingly, said deposits were added u/s. 68 r.w.s 115BBE of the Act. 3.3 During appellate proceedings, the assessee submitted that Ld.AO did not follow standard operating procedure as specified vide Circular dated 09.09.2019 in F.No.225/145/2019-ITA.II wherein AO was specifically instructed to make comparative analysis of cash sales, cash deposited. The guidelines also suggested observance of special indicators for bogus sales or backdated sales. However, no such findings were rendered by the AO. The assessee had already submitted list of all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed u/s 142(1) from time to time calling numerous details from the assessee. The assessee was required to file numerous details including monthly cash flow statement, inventory of closing stock, copy of sales tax assessment order, monthly cash deposits and credits for various periods, ledger account for purchase and other expenditure, monthly sales gross receipts, monthly purchases, details of old notes and new notes deposited during demonetization period, the day book, Cash book, ledger maintained for business, cash balance as per cash book etc. All these details were duly submitted by assessee vide reply dated 12-12-2019. The assessee also submitted month-wise cash deposits in all bank accounts, details of old notes deposited at the time o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that the assessee had duly evidenced the source of cash deposit and therefore, addition could not be made u/s 68. Similar is another decision of SMC Raipur Bench in Rahul Cold Storage Vs. ITO (supra) wherein it has similarly been held that when the deposits were sourced out of business receipts duly recorded in the books of accounts, no such addition could be made u/s 68. The other cited decision of Bangalore Tribunal is also on similar lines. 8. Considering the facts and circumstances of the case, we find force in assessee's case and therefore, delete the impugned addition as made u/s 68. We order so. The Ld. AO is directed to re-compute the income of the assessee. 9. The appeal stands allowed in terms of our above order. Order p ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
