The Tax Publishers2023 TaxPub(DT) 4611 (Chen-Trib)



Pappiah Enterprises v. ACIT

ITA No. 791/CHNY/2022

28 July, 2023

Appellant by: S.P. Chidambaram, Advocate

Respondent by: P. Sajit Kumar, Joint Commissioner


This appeal filed by the assessee is arising out of order of the Commissioner (Appeals)-18, Chennai vide Order No. ITBA/APL/M/250/2022-23/1044143600(1) dated 27-7-2022. The assessment was framed by the ACIT, Non-Corporate Circle-22, Chennai for the assessment year 2017-18 under section 143(3) read with section 147 of the Income Tax Act, 1961 (hereinafter the Act) vide Order dated 12-12-2019.

2. The only issue in this appeal of assessee is as regards to the order of Commissioner (Appeals) confirming the action of the assessing officer in making addition of unaccounted cash under section 69 of the Act being deposits of Specified Bank Notes (SBNs) during demonetization period. For this, assessee has raised various grounds, which need not be reproduced.

3. Brief facts are that the assessee firm is carrying on the business as distributor for Nestle India Ltd. For the relevant assessment year 2017-18, assessee filed its return of income on 4-11-2017 declaring total income at Rs. 8,460 along with audit report under section 44AB of the Act. The Revenue carried out a survey under section 133A of the Act on 14-3-2017 at the business premises of the assessee. During the course of survey on 14-3-2017, statement of partner of the assessee firm Shri K. Srinivasan was recorded and as per the assessment order, the assessee has made cash sales and received demonetized currency in the shape of 1000 and 500 Specified Bank Notes to the extent of Rs. 31,21,238 and according to assessing officer, the assessee partner admitted the same as unexplained cash deposit and declared under Pradan Mantri Garib Kalyan Yojana (PMGKY) scheme amounting to Rs. 31,21,000 and agreed for payment of taxes on the same. But in the return of income filed, the assessee has not declared this income and therefore, notice under section 148 of the Act dated 20-2-2019 was issued and the case was reopened and assessment was framed under section 143(3) read with section 147 of the Act vide Order dated 12-12-2019. The assessing officer made addition of unaccounted cash under section 69 of the Act and applied the provisions of section 115BBE of the Act. Aggrieved assessee preferred appeal before Commissioner (Appeals).


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