PCIT Vs Bipin Babu Agarwal (Allahabad High Court)
The Allahabad High Court dismissed the Revenue’s Income Tax Appeal filed under Section 260A of the Income Tax Act, 1961, against the order of the Income Tax Appellate Tribunal, Agra Bench, dated 28.03.2025 for Assessment Year 2017-18. The Tribunal had dismissed the Revenue’s appeal against the order of the Commissioner of Income Tax (Appeals), Kanpur, dated 28.06.2022, which had accepted the explanation furnished by the assessee concerning cash sales of Rs. 9,00,04,277/- made at the time of demonetisation.
The assessee was a trader in gold and silver jewellery and ornaments. On 08.11.2016, the date of demonetisation, the assessee disclosed cash sales amounting to Rs. 9,00,04,277/-. The Assessing Authority disbelieved the disclosed cash sales. The issue was considered by the CIT (Appeals) and subsequently by the Tribunal.
The appellate authorities recorded categorical findings that the cash sales were supported by sale invoices duly recorded in the assessee’s books of accounts. The stock register also supported the sales disclosed by the assessee. Further, the sales had been recorded in the returns filed under the UP VAT Act, 2008.
Before the High Court, the Revenue sought interference with the Tribunal’s order. After hearing the Revenue’s counsel and perusing the record, the High Court found no good ground to interfere. The Court noted that the CIT (Appeals) and the Tribunal had examined the issue and found supporting material for the assessee’s explanation. According to the Court, no adverse material had been found by the appellate authorities to disbelieve the explanation furnished by the assessee.
