9911796707
TMI Blog2025 (5) TMI 1491X X X X Extracts X X X X X X X X Extracts X X X X ..... inafter referred to as "Act"] for the Assessment Year [A.Y.] 2017-18, wherein learned CIT(A) has dismissed assessee's appeal and confirmed the addition made vide assessment order dated 19.12.2019. 2. The brief facts under appeal state that assessee was running a petrol pump in the name and style of M/s. Vishal Filling Station, VPO Jakhoda, Bahadurgarh. Assessee e-file its return of income on 07.11.2017, declaring total income of Rs. 39,65,160/- the return was processed u/s. 143(1) of the Act. The case was selected for complete scrutiny under CASS. Statutory notices u/s. 143(2) and 142(1) of the Act were issued and served upon the assessee asking her to explain as to why cash of Rs. 13,75,000/- was deposited on 25.11.2016 in the currency of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indings and without observing the principle of natural justice. 3. That in any case and in any view of the matter, action of Ld. CIT(A) in upholding the action of Ld Assessing Officer in making an addition of Rs. 13,75,000/- on account of unaccounted income u/s 68 of the Act, during post-demonetization period, is bad in law and against the facts and circumstances of the case. 4. That having regard to the facts and circumstances of the case, the Ld. CIT(A) has erred in law and on facts in upholding the action of Ld. Assessing Officer in making an addition of Rs. 27,587/- on account of 10% of car expenses being personal in nature, and that too by recording incorrect facts and findings and without observing the principle of natural justice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation period on account of SBN of Rs. 1,000/- denomination deposited in bank on 25.11.2016 ? Secondly, whether the appellant assessee was entitled for the claim of car expenses of Rs. 2,75,873/- during the year under consideration ? 8. Ld. Representative of the assessee has submitted that the assessee was entitled to deposit the sale proceeds by 31.12.2016 in view of the specified bank notes (cessation of liabilities) Act 2017. Further, submitting that this substantive law supersedes all the previous notifications and issued by the Central Government. Ld. AR has referred an order dated 16.03.2022 passed by the Visakhapatnam Bench of this Tribunal passed in ITA No.76/Viz/2021 for AY 2017-18 in support of his arguments. 9. The ld. DR supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per Section 2(1)(a), "appointed day" means the 31st Day of December 2016. Section 5 of the Specified Bank Notes (Cessation of Liabilities) Act, 2017 also deals with prohibition on holding, transferring or receiving specified bank notes. Section 5 states that "On and from the appointed day, no person shall knowingly or voluntarily, hold, transfer or receive any specified bank note". We therefore, find that the specified bank notes can be measured in monetary terms since the guarantee of the Central Government and the liability of Reserve Bank of India does not cease to exist till 31.12.2016. In view of the above, the contention of the Ld.DR, treating the receipt of SBNs from cash sales as illegal and thereby invoking the provisions of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s miserably failed to take into consideration the aforesaid Act (No. 2) of 2017 and passed impugned order contrary to the law to this extent. The aforesaid first point is accordingly determined in favour of the appellant assessee. AO is thus directed to delete the addition of Rs. 13,75,000/- added u/s. 68 of the Act. 13. Secondly, we notice that the ld. AO has disallowed a lump sum amount of Rs. 27,587/- (10% of the claimed car expenses) on the ground that the assessee failed to provide any log book in order to verify the claim as to whether the car was used for the personal purposes or for the business purposes. It is evident that neither any evidence to this extent was produced before the Revenue Authorities nor before this Tribunal. Hen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
