SAROJ PRUSTY,TALASAHI, KHURDA vs. ITO,KHURDA, KHURDA

आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the Ld. Addl/JCIT(A), Panaji dated 26/02/2024 passed in Appeal No. CIT(A),Bhubaneswarr-1/14449/2019-20 for the assessment year 2017- 2018. 2. At the outset, it is found that the appeal of the assessee is barred by 295 days. In this regard, the assessee has filed an affidavit stating sufficient reasons for condonation of delay, which are plausible and not found to be false. Ld.Sr. DR also did not raise any serious objection to condone the delay. Accordingly, the delay of 295 days in filing the appeal by the assessee is condoned and the appeal of the assessee is admitted for hearing.

2 ITA No.131/CTK/2025 3. It was the submission that the assessee is a dealer in FMCG items. It was the submission that in the course of assessment proceedings, the assessee’s books of accounts were rejected and as against 1.9% disclosed by the assessee 2.5% was added. Rather the AO added the demonetized currency deposited in the bank account of the assessee as the unexplained income of the assessee. It was the submission that demonetized currency deposited was out of cash and the sale proceeds of the assessee. It was the submission if the books of accounts of the assessee is rejected no addition on account of the cash deposited in the bank accounts is made. It was the submission that the income estimation of the income @2.5% is on the higher side and therefore, the same may be reduced. 4. In reply, ld. Sr. DR supported the order of the ld. AO and ld. CIT(A). It was the submission that 2.5% as estimated by the AO itself is on the lower side. 5. We have considered the rival submissions. The facts in the present case clearly shows that the AO has rejected assessee’s the books of accounts. Once the books of accounts have been rejected then obviously no addition on account of demonetized currency deposited in the bank account can be made, insofar as the cash deposit is out of the sales disclosed by the assessee and is a part of the turnover. This being so, the addition made by invoking the provisions of Section 69A of the Act of Rs.5,98,500/- stands deleted.

3 ITA No.131/CTK/2025