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Income Tax Appellate Tribunal, “A” BENCH, KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 18.08.2023 for the AY 2017-18.
The only issue raised by the assessee in the various grounds of appeal is against the confirmation of addition of ₹1,40,37,000/- by ld. CIT (A) as made by the ld. AO on account of cash deposit during the demonetization period.
The facts in brief are that the assessee was running a country liquor shop during the instant year and filed its return of income on
In the appellate proceedings, the ld. CIT (A) confirmed the order of the ld. AO by holding and observing as under:-
“6.9 In view of the above facts, I have come to the conclusion that the appellant's response that debts were realized in old notes cannot be accepted since old notes were no longer valid currency/legal tender during this period and could not have been accepted [except by business who were granted exceptions for the same]. The debts in books should have been realized in the new currency alone. The appellant has been able to “5. We have heard the rival contentions and perused the material on record. The assessee before us explained that they are in the business of distribution of FMCG products and are the authorised distributor for M/s. Hindustan Unilever Limited, M/s. Britannia Industries Ltd and M/s. Kalleesuwari Refinery Private Limited etc. They purchase in wholesale from the manufacturers and sell them to retail outlets spread over their area of operation. Payments are collected from them either on the same day of sales are in due course. Irrespective of their collection, assessee has to make payments to our suppliers. The Turnover of the assessee for the last three years are as under: Financial Year 2014-15 43.44 crores. Financial Year 2015-16 48.17 crores Financial Year 2016-17 57.93 crores
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 02.12.2024.