JAYARAJ GUNASEKARAN,CHENNAI vs. ITO, NON CORPORATE WARD 10(1), CHENNAI, CHENNAI

आदेश / O R D E R

PER MANOMOHAN DAS, J.M: This appeal by the assessee is directed against the order of the learned Commissioner of Income-Tax (Appeals), National Faceless Appeal Centre, Delhi dated 29-08-2023 and pertains to the Assessment Year 2017-18.

ITA No.1193/Chny/2023 :- 2 -: 2. The Ld. CIT(A) failed to appreciate that the order passed by the Ld. Assessing Officer dated 08.05.2023 was based on surmises and conjectures. 3. The Ld. CIT(A) failed to appreciate that a comparison of cash sales with the earlier year was improper in as much as business and business opportunities vary from year to year, and during AY 2017- 18, the assessee's business had been doing very well, which had led to an increase in cash deposits. 4. The Ld. CIT(A) failed to appreciate that the assessee's bank accounts bearing No. 918201001219 and 918101039356 were used for making purchases of stock from local suppliers, and that cash deposits into the said accounts in the previous years was low. However, in AY 2017-18, business receipts had been received primarily in cash form, which had led to an increase in cash deposit.”

tax return for the Assessment Year [AY] 2017-18 on 27-01-2018 and

reported cash deposits of Rs. 31,08,500/- in his bank account

maintained with Canara Bank (A/c No. 918201001219) during

demonetization period. As per the ITS details the assessee has other

two more accounts with Canara Bank No. 918101039356 reflecting

cash deposit during demonetization of Rs. 4,98,000/- and A/c

No.91813200013 reflecting cash deposit during demonetization of

Rs.66,80,241/-. However, the assessee has not provided any details

with regard to cash deposited in SBN notes as well as non SBN notes

for the period from 08-11-2016 to 30-12-2016. The ld. Assessing

Officer passed an order under clause (d) of section 148A of the Act on

23-07-2022 and issued notice u/s 148 to the assessee asking him to

file his return of income for the relevant assessment year within 30

ITA No.1193/Chny/2023 :- 3 -: days. In response, the assessee filed ITR for AY 2017-18 on 18-04-

2023 declaring total income of Rs. 7,17,710/- vide acknowledgement

No. 119244500180423. Notice u/s 143(2) of the Act was issued to the

assessee on 20-04-2023. Notice u/s 142(1) of the Act was issued to

the assessee on 05-01-2023 along with detailed questionnaire for

compliance on or before 20-01-2023, but not responded by the

assessee. Thereafter, on various dates notices u/s 142(1) of the Act,

u/s 144 of the Act were issued to the assessee including final show

cause notice and the assessee filed his reply on 18-04-2023 and 22-

04-2023, respectively. The assessee filed written reply and copy of

bank statements.

bank statements and observed that the assessee during the

demonetization period deposited cash in his bank account Nos.

0918201001219, 918101039356 amounting to Rs. 26,00,000/- and

Rs.4,98,000/-, respectively. The ld. AO further observed that the

assessee did not provide the nature and source of cash deposits made

during the demonetization period. Therefore, the ld. AO vide order

dated 08-05-2023 treated the aforesaid amount of Rs. 30,98,000/- as

unexplained money u/s 69A of the Act and added to the total income

of the assessee.

ITA No.1193/Chny/2023 :- 4 -: Being aggrieved, the assessee filed 1st appeal before the ld. 5.

CIT(A). The ld. CIT(A) vide order dated 29-08-2023 partly allowed the

appeal of the assessee.

the Tribunal.

materials on record. The Ld. AR submitted that comparison of cash

sales with the earlier year was improper, assessing business was very

well during the relevant period, business received primarily was in

cash form. On the other hand, the Ld. DR submitted that the assessee

did not provide the information regarding the deposit of SBN notes

during demonetization period and the nature source of the cash

deposits was not explained.

perused the materials on record. We observe that the ld. CIT(A)

confirmed the addition made by the ld. AO. However, the ld. CIT(A)

given partial relief to the assessee to the extent of Rs. 3.25,000/- by

observing that the assessee during the AY 2015-16 deposited cash

amount of Rs.3,14,000/-. We, further observe that the assessee did

not provide information about the SBN notes deposited by him during

ITA No.1193/Chny/2023 :- 5 -: the demonetization period besides non-explanation of the nature and source of cash deposits. Therefore, it is our considered opinion that the total income of the assessee may be changed in case the information about the SBN notes and nature and source of cash deposited are furnished to the assessing authority. Accordingly, one more opportunity ought to be given to the assessee for furnishing the nature and source of the cash deposited by him including the information about the SBN notes deposited during the demonetization period. Hence, we set aside the orders of the lower authorities and remand the matter to the ld. AO for fresh examination. At the same time, we direct the assessee to substantiate his claims before the ld. AO by furnishing the desired information.

Sd/- Sd/- (मंजुनाथ. जी) (मनोमोहन दास) (Manjunatha. G) (Manomohan Das) �ाियक सद�/Judicial Member लेखा सद�य लेखा सद�य /Accountant Member लेखा लेखा सद�य सद�य चे�ई/Chennai, �दनांक/Dated 06th March, 2024. EDN/-

आदेश क� �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ*/Appellant 2. +,थ*/Respondent 3. आयकर आयु-/CIT 4. िवभागीय +ितिनिध/DR 5. गाड( फाईल/GF

ITA No.1193/Chny/2023

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