9911796707
TMI Blog2025 (1) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... discussed in brief. The assessee is a partnership firm and is carrying on the business of trading in jewellery. It filed its return of income for the year under consideration, declaring a total income of Rs. 40.52 lakhs. The return of income was taken up for scrutiny. It was noticed that the assessee has deposited Rs.3.00 crores in Saraswat Co-operative Bank Ltd and Rs.50,06,000/- in Deccan Merchants Co-operative Bank Ltd cash during the demonetization period. The aggregate amount of deposits made by way of cash was Rs.3,50,06,000/-. As per the requirement of Cash demonetization scheme, the depositors have to report the details of cash deposited in their bank account in a prescribed form. According to AO, the assessee has reported the cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it made in Deccan Merchants co-operative Bank Ltd in the return of income was a clerical mistake only, i..e, the actual deposits of Rs. 50,06,000/- was wrongly entered as Rs. 5,06,000/- by omitting one "zero". He submitted that the assessee has correctly declared the deposit amount of Rs.50,06,000/- in the cash deposit declaration form filed with the Income tax department and hence there was no necessity for the assessee to report a wrong amount in the return of income. The Ld.AR further submitted that the assessee has also reported the cash deposit of Rs. 3 crores made with Saraswat Co-operative Bank Ltd., by way of a separate declaration, but it was omitted to be considered by the AO. Accordingly, the Ld.AR submitted that the AO should no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not proved that it was having sufficient stock in its hands during that period to make cash sales. Accordingly, the Ld D.R submitted that the assessee has not furnished proper documents supporting the cash deposits made into the bank accounts. Accordingly, he submitted that the order passed by Ld.CIT(A) need not be interfered with. 6. In the rejoinder, the Ld.AR submitted that the assessee was having sufficient quantity of physical stock of gold, silver, diamonds and other stones. However, the details of physical stock of above items could not be furnished before the tax authorities by inadvertence. The Ld.AR submitted that the assessee is furnishing the details of stock summary before the Tribunal by way of additional evidences along wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejected the books of accounts of the assessee and also did not bring any material on record to reject the said claim. In our view, if the AO had doubted the claim of availability of cash in the books of the assessee, which was claimed to have been generated out of cash sales, it is necessary for him to conduct proper enquiries to find out the veracity of the claim made by the assessee. Without conducting necessary enquiries, the AO should not take any adverse view. Since the AO has not conducted any enquiry, we are of the view that the AO has made the impugned addition of Rs. 3.05 crores u/s. 69A of the Act under suspicion, which is not permitted under the law. 9. At the same time, there is a lacunae on the part of the assessee also. We n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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