ORDER

This appeal has been preferred by the assessee against order dated 12.06.2024, passed by the National Faceless appeal Centre, Delhi (NFAC) for Assessment Year 2017-18.

2. The brief facts of the case are that the Income Tax Department received information through ITBA-Cash Transaction-2016 that the assessee had deposited cash amounting to Rs.14,45,000/- in his Bank Account No.50040200000054 maintained with Bank of Baorda, Adarsh Nagar Branch, Unnao during the demonetization period (from 09.11.2016 to 30.12.2016). In response to the statutory notices issued by the Assessing Officer (AO), the assessee explained the source of deposits made in his Bank Account as his earlier savings of Rs.81,000/- and out of cash sales and receipts from debtors of Rs.13,64,000/-. The assessee also submitted before the AO that the assessee was engaged in the business of trading of tyres and the same was purely cash business. After considering the reply furnished by the assessee, the AO observed that during the demonetization period, the assessee had deposited in his Bank Account a total amount of Rs.14,45,000/-, out of which Rs.9,37,500/- were in old Specified Bank Notes (SBNs) of Rs.1000/- and Rs.50