DOMERAJI INDAJI DEVRA,BANASKANTHA vs. THE ITO, WARD-4, PALANPUR

The assessee has raised the following grounds of appeals:

Ld.CIT(A) erred in law and on facts in confirming addition of Rs.25,50,000/- made u/s.69A of the Act being allege unexplained money without appreciating facts and law of the case properly.

Without prejudice to above, Ld .Assessing Officer erred in law and facts in taxing the income at special rate mentioned in Section 115BBE of the Act without appreciating that amendment made in Section 115BBE will be applicable from AY 2018-19 onwards and not applicable for AY 2017-18 which is assessment year under question.

The appellant craves leave to add, amend or alter the grounds of appeal at the time of hearing if need arise.

The Assessing Officer observed that assessee had total deposits of Rs.25,50,000/- which includes cash deposit of Rs.17,50,000/- deposited in the bank account. The Ld. CIT (A) held that though the assessee had submitted that the amount was deposited to repay the loan taken from RBL Bank, the appellant has not furnished any loan certificate to substantiate this claim. Before us, it was submitted that the assessee is a potato dealer and has been doing the business in cash over the years. The cash deposits are consistent pattern in the business of the assessee during the year and the earlier years. The alleged repayment of loan could have been simply verified by the Ld.CIT (A) by examining the bank statement, for which the revenue authorities failed to do, thus digressing the issue of cash deposits and the source of cash thereon. On the point of cash deposits it was submitted that the assessee has been engaged in the sale of agricultural produce (potatoes). This fact is not disputed by the revenue authorities. Hence, keeping in view the specific facts of the case and the bank statement filed by the assessee, we hold that no addition is warranted. Asst. Year : 2017-18 - 3–

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

अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधतआयकरआयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file.