TMI Blog2023 (12) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... hold expenses of assessee at Rs. 1.00 lacs, the assessee was hardly having cash balance of Rs. 6.00 lacs. From the aforesaid observation of assessing officer, find that the assessing officer has accepted the case balance of Rs. 6.00 lacs with assessee and disbelieved the remaining cash balance. Thus, the assessing officer accepted the availability of cash of RS. 6.00 lacs with the assessee. Since, the assessee was showing business income from several years, for the year under consideration the assessee has shown income of about Rs. 10.00 lacs (Approx) therefore, the assessee is also given benefit benefits of Rs.200 lacs, thereby the additions to the extent of Rs. 8.00 lacs are deleted and remaining addition of Rs. 2.90 lacs is upheld. Taxing of the addition under amended provisions of section 115BBE we find that division bench of this Tribunal in Samir Shantilal Mehta [ 2023 (5) TMI 1279 - ITAT SURAT] , Arjunsinh Harisinh Thakor Vs [ 2023 (6) TMI 770 - ITAT SURAT] and in JItendra Nemichand Gupta (supra)[ 2023 (6) TMI 1338 - ITAT SURAT] and Indore Bench in DCIT Vs Punjab Retain Pvt Ltd [ 2021 (11) TMI 405 - ITAT INDORE] and Sandesh Kumar Jain [ 2022 (11) TMI 126 - ITAT JA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hand of Rs. 13,84,872/- alongwith documentary evidence, contra confirmation and purchases made by assessee and also mentioned in the show cause notice that no further opportunity will be granted to the assessee. The assessee was directed to furnish explanation/reply on or before 09th December, 2019. The Assessing Officer recorded that the assessee filed reply on 09/12/2019, wherein it was stated that she has have given her submission on 29/04/2019, 23/08/2019 and 19/11/2019 and furnished full details of cash in hand, income earned during the year and deposits made in the bank account. The assessee also stated that she has given five years cash flow statement, return of income and cash in hand. The assessee submitted that she was having cash in hand as on 09/11/2016 of Rs. 16,98,668/- and the opening cash balance as on 01/04/2016 was Rs. 13,84,827/-. The reply of assessee was not accepted by Assessing Officer. The Assessing Officer noted that in the return of A.Y. 2015-16, the assessee shown gross receipt of Rs. 3,78,000/- and profit of Rs. 3,62,780/- and under the column of cash balance mentioned at Zero. Thus, during Financial Year (FY) 2014-15, there is no closing cash on hand. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the books of account, if any maintained by him for any source of income and assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered by him is not, in the opinion of Assessing Officer, satisfactory, the money and value of bullion, jewellery or other valuable article may deem to be income of assessee for such financial year. Further, Section 12A provides that books of account includes ledger, day books, cash book, account book and other books, whether kept in the written form or in a print out of data stored in a floppy, discs, tape or any other form of electro-magnetic data storage device. Thus, as per language of Section 69A, it could be invoked only when the assessee has not recorded any money in the books of account and offered no explanation. On the basis of such assertion, the assessee stated that Section 69A of the Act is not application on the assessee. The assessee recorded that the deposits of money in cash book, which was provided to the Assessing Officer. Maintenance of cash book is a books of account. The assessee is filing return of income under Section 44AB and is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said assessment year, the assessee has shown a good profit and declared income of approximately rs. 10.00 lacs (Rs. 9.95 lacs). During demonetization period, the assessee made cash deposit on two times, Rs. 1.90 lacs and Rs. 9.00 lacs. On deposits, certain preliminary enquiry was made by Assistant Director of Income Tax (ADIT) (Inv.), Unit-3, Surat by issuing summon under Section 131 of the Act. In response to such summon, the assessee explained the deposit and furnished cash book. Thereafter on filing return of income, the case of assessee was selected for complete scrutiny. Before the Assessing Officer, the assessee again furnished complete details and also filed copy of return of income for A.Y. 2014-15, 2015-16 and 2016-17. The assessee has shown total turnover of Rs. 12,43,200/- and have shown profit of Rs. 9,94,000/- which is about 80%. The assessee furnished cash flow statement, copy of which is filed at page No. 34 of paper book. Till 08/11/2016, the assessee was having cash receipt of embroidery income of Rs. 5,34,900/-, the opening cash balance as on 01/04/2016 was Rs. 13,84,827/- thus as on 08/11/2016, the assessee was having Rs. 19,19,727/- as cash in hand. No defect i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the Tribunal to substantiate alleged business activities. The ld. Sr. DR for the revenue submits that he fully supports the order of ld. CIT(A) that the assessee was declared return of income in earlier years just about minimum income not chargeable to tax till A.Y. 2015-16 and all of a sudden increased her returned income. 7. I have considered the rival submissions of both the parties and perused the record carefully. I have also perused the orders of the lower authorities. I find that the assessing officer in para -7 of the assessment order recorded that in the return of A.Y. 2015-16, the assessee shown gross receipt of Rs. 3,78,000/- and profit of Rs. 3,62,780/- and under the column of cash balance mentioned at Zero. Such finding of the assessing officer is not countered by ld AR for the assessee by showing any adverse evidence. However, I further find that that the assessing officer in para - 7 of his order itself held that for A.Y. 2016-17 the assessee filed return of income on 24.12.2016 i.e. after demonetization the assessee has shown gross receipt under Section 44AD of the Act of Rs. 12,45,600/- and net income of Rs. 10,00,180/-. The assessee also claimed deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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