TMI Blog2024 (2) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2016 to 31.12.2016 providing the details of opening cash in hand, cash withdrawals made from the bank, cash deposits made in the bank, cash sales made during the period and closing cash balance. In the instant case, the assessee had given proper explanation for withdrawal of cash in whole sums in the month of October, 2016 which evidently enabled him to hold huge cash balance to make cash deposit (i.e. during demonetization period). As stated earlier, similar cash deposit made by the assessee in the sum of Rs. 12 lakhs in July 2016 was also sourced out of cash balance available with the assessee in its books, which has been accepted by the revenue. From the perusal of the cash book, we find that there was absolutely no negative cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer, ACIT, Circle-35(1), Delhi (hereinafter referred to as ld. AO ). 2. The only issue to be decided in this appeal is as to whether the ld CIT(A) was justified in confirming the addition of Rs. 69,38,000/- made on account of cash deposit made during the demonetization period by the assessee in the facts and circumstances in the instant case. 3. We have heard the rival submissions and perused the material available on record. The facts of the case are that assessee is the proprietor of M/s Bharat Cartons Printers and engaged in the business of manufacturing of corrugated cartons and boxes and multilayer co-ex PE film. Assessee filed his return of income on 29.10.2017 declaring total income of Rs. 56,45,490/-. Books of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as submitted that in the beginning of labour dispute, there were only few workers who wanted to claim their full and final settlement. But as days progressed, more and more workers joined the protest for full and final settlement. Accordingly, the assessee thought it fit to have sufficient cash balance in his kitty to discharge the labour dues as part of the full and final settlement for which purpose, huge cash withdrawals in the month of October, 2016 were made. On 08.11.2016, demonetization was announced by the Govt. of India and hence the assessee was forced to deposit the available cash in specified bank notes in the bank account. The Bank Manager was refusing to collect the cash in huge sums and he was denying the same and ultimately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08.11 to 12.11.16 7,197,215.00 7,069,624.00 14.11 to 19.11.16 7,069,624.00 122,000.00 7,043,882.00 21.11 to 26.11.16 7,043,882.00 124,000.00 7,067,699.00 28.11. to 30.11.16 7,067,699.00 50,000.00 7,015,818.00 01.12 to 06.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ization period). As stated earlier, similar cash deposit made by the assessee in the sum of Rs. 12 lakhs in July 2016 was also sourced out of cash balance available with the assessee in its books, which has been accepted by the revenue. From the perusal of the cash book, we find that there was absolutely no negative cash balance with the assessee on any single day. Once the cash book together with audited books of account and tax audit report filed by the assessee before the ld AO had not been rejected and once, there is sufficient cash balance available with the assessee to make cash deposit and the same are duly reflected in the books of account, there is no case for the revenue to hold that cash deposit were made out of undisclosed sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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