SARASWATI SHISHU MANDIR PARICHALANA SAMITI, HATIATANGAR,HATIATANGAR vs. ITO EXEMPTION, CUTTACK, CUTTACK

It was submitted by the Ld. AR that the assessee is running an educational institution in Kendujhar. It was the submission that the during the demonetization period the assessee had deposited Rs.11,33,280/- in cash in his bank account. It was further submission that the SBN deposited during the demonetization period was to an extent of Rs.4,98,500/-. It was the further submission that the assessee had total receipts of Rs.1,54,00,000/-. It was the submission that the AO did not accept the contentions of the assessee in respect of the demonized currency deposited in the bank account and has stated the same as unexplained money in the hands of the assessee. It was the submission that he had no objection if the issue is restored to the file of the AO for verification from the cash book in respect of the money deposited in the bank account.

In reply, the Ld. Sr. DR submitted that he had no objection if the issue is verified by the AO.

I have considered the rival submissions. A perusal of the facts in the present case clearly shows that the assessee has deposited the money and as per the claim of the ld. AR the money is out of the cash book of the assessee. The assessee admittedly has not produced the cash book before me for proving the said transactions. However, in the interest of justice, I am of the view that issues in this appeal are required to be restored to the file of the AO for re-adjudication after granting the assessee adequate opportunity to prove its claim. The AO shall verify the cash book in respect of the availability of the cash for the above deposit in the bank account of the assessee. If the assessee is able to show that it had adequate cash in its cash book for the purpose of depositing the same in its bank account and the same is equal to or an excess of the cash deposited in the bank account during the same dates, then no addition is called for.