ACIT Vs A. Geeri Pai Gold & Diamonds (ITAT Cochin)
Demonetization cash deposit of ₹5.56 cr lands back with CIT(A) – ITAT orders fresh probe Jewellery sales on 8 Nov under lens – ITAT sends ₹5.56 cr SBN deposit case for re-adjudication ITAT flags gaps in CIT(A) order on gold trader’s demonetization cash – Directs denovo review
Demonetization cash deposit of ₹5.56 cr lands back with CIT(A) – ITAT orders fresh probe; Jewellery sales on 8 Nov under lens – ITAT sends ₹5.56 cr SBN deposit case for re-adjudication; ITAT flags gaps in CIT(A) order on gold trader’s demonetization cash – Directs denovo review
Assessee, a partnership firm engaged in manufacturing & retail trade of gold, diamond jewellery, & silver articles, filed a return declaring a loss of Rs 4.13 crore for AY 2017-18. During the demonetization period, it deposited Rs 5.56 crore in Specified Bank Notes (SBNs) over three days Rs 1.50 crore (11.11.2016), Rs 1.68 crore (12.11.2016), & Rs 2.37 crore (13.11.2016). AO treated the deposits as unexplained money u/s 69A, disbelieving Assessee’s explanation that they came from jewellery sales on 08.11.2016. AO’s doubts included unverifiable purchases of old gold, inconsistencies in goldsmiths’ statements, self-serving voucher books, improbable sale pattern of 401 transactions all below Rs 2 lakh & lack of verifiable customer details. The amount was taxed u/s 115BBE.
