9911796707
TMI Blog2024 (2) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... oth in law and, on facts in upholding the determination of income made by the learned Assistant Commissioner of Income Tax, Bhiwani of the appellant at Rs. 40,25,455/-as against declared income of Rs. 98,041/- by the appellant in an order of assessment dated 28.12.2019 u/s 143(3) of the Act. 2. That assumption of jurisdiction by the learned Income Tax Officer, Ward-1, Bhiwani to issue notice u/s 143(2) of the Act for the instant Assessment year was illegal, invalid and void-ab-initio and therefore consequently order of assessment for the instant assessment year is without jurisdiction and deserves to be quashed as such. 3. That the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) has erred both in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appreciate that once the purchases declared in the books of accounts were duly accepted then no subjective assumption and presumption could be made a basis to subjective assumption and presumption could be made a basis to assume, allege and conclude that sales made out of such purchases were unexplained money under section 68 of the Act. 3.5. That the learned Commissioner of Income Tax (Appeals) has erred both in law and on facts in recording various adverse inferences which are contrary to the facts on record, material placed on record and, are otherwise unsustainable in law and therefore, addition so sustained is absolutely unwarranted. 4. That without prejudice to the above and in the alternative, even otherwise, the learned Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. 6. Ld. Counsel for the assessee vehemently argued that authorities below failed to appreciate the facts in right perspective. The accounts of the assessee were not rejected. The assessee has stated the source of cash deposits was out of sales. The Assessing Authority has not given finding regarding sales being bogus. The Assessing Authority had also accepted the stock as disclosed in DVAT. Therefore, the addition made and sustained by Ld.CIT(A) is not justified. Ld. Counsel for the assessee submitted that the AO however, accepted the opening balance for the month of October, 2016. He contended that the cash sales have been made subsequently as well. He drew my attention to the pages 85 to 86 of the Paper Book wherein as per page ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l corollary would be that AO accepted the sales made in cash also. Hence, the source of cash deposits ought to have been treated as explained. Further, the AO has not commented on purchases. Undisputedly manufacturing and trading activity would be based on sale and purchase. If the purchases are treated as genuine and stock is also accepted then treating the sales as bogus is not logical. The Ld.CIT(A) sustained the finding of the AO by observing as under:- 7.0. "I have gone through the assessment order and the submissions made by the AR of the appellant. Ground no.1 & 3 are relating to addition of cash credit of Rs. 39,27,414/- u/s. 68 of the Act. As seen from the details furnished by the appellant and the assessment order, the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cash deposited is Rs. 2.96 crores which is an increase of 71.57% which is quite huge. The appellant has stated that he has received cash from sundry debtors but he has not filed any confirmations from sundry debtors that they had paid the amounts to the appellant prior to the date of demonetisation. As per the RBI Guidelines issued after demonetisation, only selected banks and other establishments like hospitals, petrol stations, railways, state transport etc. were only allowed to accept the demonetised notes. The appellant is not falling in any of these categories notified by the RBI to accept the demonetised notes. The appellant could not accept the demonetised notes from the sundry debtors after the date of demonetisation. Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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