DIPESH CHANDRAKANT SHAH,AHMEDABAD vs. THE ITO, WARD-1(3)(1), AHMEDABAD

The Learned CIT (A) has erred in not passing any speaking order regarding the materials filed before him and only put Assessment Year 2017-18

The assessee filed return of income for assessment year 2017-18 on 14-11-017 declaring total income of Rs. 3,82,210/-. The case of the assessee was selected for scrutiny and notice u/s. 143(2) of the Act dated 09-08-2018 was issued. Subsequently, notices u/s. 142(1) of the Act dated 26-08-2019 and 13-11-2019 were issued and served upon the assessee. The Assessing Officer observed that the assessee is an individual and is doing the business of trading in stationary items. The assessee deposited cash of Rs. 81,89,200/- in his bank accounts maintained with Saranpur Co.op Bank Ltd., Nutal Nagarik Sahakari Bank and the United Co-op. Bank Ltd. In response to the notices, the assessee filed reply dated 19-12-2019 thereby stating that the assessee filed Form 1 declaration u/s. 199C of the Finance Act, 2016 and Form No. 2, Certificate of Declaration issued in this regard. The Assessing Officer held that the assessee failed to submit the proof and therefore made addition of Rs. 81,89,200/- as undisclosed income.

Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.

The ld. A.R. submitted that the amount deposited in the respective bank accounts either sale proceeds or cash deposits through any bank which was withdrawn from same or another banks and deposited from earlier debtors as mentioned in cash book filed before the Assessing Officer. The ld. A.R. submitted

The ld. D.R. relied upon the assessment order and the order of the CIT(A).

We have heard both the parties and perused all the relevant material available on record. It is pertinent to note that for the period of 01-04-2016 to 31-12-2016, the assessee has received cash to the extent of Rs. 84,64,982/- and some of the cash was withdrawn in this component as well. The assessee deposited total cash of Rs. 82,11,700/-. The assessee has given the details of cash deposit from 01-04-2016 till 08-11-2016 which amounts 21,99,700/- and that also in only one bank itself. The assessee has given the other two bank receipts of cash details which amounts 27,52,000/- and even in cash received in one of the banks was 17,52,300/-. The assessee also received cash sales and cash received from debtors which amounts 34,00,183/-. Thus, the assessee was having sufficient cash in hand prior to period 09-11-2016 to 31-12-2016. Thus, the assessee has given all these details to the Assessing Officer as well as to the CIT(A) and no discrepancy has been pointed out either by CIT(A) or by the Assessing Officer in assessee’s cash book as well as the statement in respect of withdrawal from each bank and the deposit to that effect. Thus, the assessee has proved the cash deposits during demonetization period and I.T.A No. 884/Ahd/2025

In the result, the appeal of the assessee is allowed.

Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,