SANDIP CHANDRAKANT RENUSE,KATRAJ vs. INCOME TAX OFFICER WARD 5 (2), PUNE, SWARGET

Sole grievance of the assessee is that Ld. CIT(A) erred in confirming the addition at Rs. 9,16,000/- made by Ld. Assessing Officer (AO) u/s 69A r.w.s 115B of the Act for

We have heard rival contentions and perused the record placed before us. We observe that the assesse is an individual and Rs. 3,90,720/- declared in the return of income for A.Y. 2017-18 e-filed on 23.02.2018. The assessee is a milk distributor for various Brands namely Chitale, Amul and Krushna. Business is being carried out in the name under the sole partnership of M/s ‘Hari OM Shree Milk Suppliers’. On the total sales effected by the assessee from various milk suppliers, assessee earns gross commission income of Rs. 14,20,331/- Ld AO has carried out the assessment proceedings based on the information about cash deposits during the demonetization period at Rs. 67,76,500/- Subsequently during the course of assessment proceedings, Ld. AO after going through the account of cash sales/cash in hand as on 19.11.2016, was not satisfied with the contentions of the assessee that the cash deposited in SBN at Rs. 9,16,000/- after 10.11.2016 are out of regular sales carried out by the assessee.

We observe that the assessee is into this business for past many years. In the preceeding year for A.Y. 2015-16 total cash deposited in the bank amounted to Rs. 4,64,44,850/- which included the cash deposit during the period 09.11.2015 to 31.12.2015 at Rs. 1,87,01,680/- We also note that total cash deposit in bank during financial year 2016-17 (A.Y. 2017-18) is Rs. 4,87,24,600/- out of which Ld. AO has only doubted cash deposit of Rs. 9,16,000/- Only allegation of the AO is that how the assessee could have received SBN notes post the announcement of demonetization scheme.

We note that the assessee is a milk distributor and earns commission income (subject to deduction of tax at source) and claims incidental expenses. Complete details of cash deposits in bank are maintained by the assesse. Letter from Amul, Chitale and Krushna Milk Suppliers are placed on record. When the genuineness of the regular business of milk distribution source and major portion of cash deposit is not in dispute then challenging the genuineness of the alleged cash deposits is not justified. Therefore considering the submissions filed by assessee before this Tribunal placed in paper book running from page No. 01-75 and also placing reliance on decision of Benches as well as this Tribunal Benches placed in paper book from page No. 01 to 49, we are of the considered view that the source of alleged cash deposit is the receipts from sale of milk by the assessee in the capacity of a milk distributor and therefore no addition u/s 69A r.w.s 115BB of the Act at Rs. 9,16,000/- is called for. Finding of Ld. CIT(A) is reversed and impugned addition is deleted. Grounds of appeal raised by the assesse are allowed.

In the result appeal of the assessee is allowed.