9911796707
TMI Blog2013 (12) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... The issue was restored for fresh adjudication. Cash deposits out of sale of chemicals Held that:- The CIT(A) has confirmed the addition made by the AO on the ground that no document/material was available on record to support the fact of cash deposits being already included in the aggregate of cash deposits as computed in the hand of Shri Naresh Vora - Neither the AO nor the CIT(A) has given any finding on the issue that out of the total cash deposit in the bank certain amount is regarding the sales made by the assessee during the year on which the net profit has been declared in the return of income The issue was restored for fresh decision. Loan received - Addition u/s 68 Held that:- No fresh loan taken by the assessee during the current year under consideration - The CIT(A) has compared the unsecured loan as on 31.3.1993 to 31.3.1995 - The outstanding balance of unsecured loan as on 31.3.1994 has not been taken into account so as to compare with the unsecured loan as on 31.3.1995 in order to find out any increase of unsecured loan during the year It would be justified to verify the amount of fresh loan taken during the year under consideration - The issue was resto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in the case of V Jain group and Thhakr group who were engaged in dealing with Naphtha, it was found that sales were made by these parties in cash in the open market at a premium and create a fa ade of genuineness, accommodation entries were being procured. The Naphtha dealers provided cash to hawala bills provider which was deposited in the bank and in turn cheques were issued along with hawala bills to the Naphtha dealer. The Vora Group was indulge and providing such accommodation entries. The Assessing Officer assessed the unaccounted commission @ 4% of the total cash deposited during the year under consideration. It was found that a cash of Rs.2,59,65,000/- was deposited in the bank account which were either directly or after routing through another bank account transferred to some other party purportedly against sale proceeds. Accordingly, the AO worked out the unaccounted commission income @4% on such cash deposit at Rs.10,38,600/- and added the same to the total income of the assessee. On appeal, the assessee has explained, before the CIT(A), the reasons for non-attendance before the AO. It was submitted that the assessee has given general power of attorney to his brother ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur notice that the Tribunal has considered the issue of addition on account of commission in the case of Shri Naresh Vora wherein the entire deposits in bank including the deposits in assessee s bank were subject matter for the addition on account of commission income has been confirmed by this Tribunal. Thus, the Ld. AR has referred the details of cash received and deposited in the bank account of Pooja Industrial Corporation as well as the propriety concern of Shri Naresh Vora, Nitin Vora and Bhavna Vora. The Ld. AR has explained that the total amount as mentioned in the said chart at page no. 5 of the paper book has been considered in the case of the Shri Naresh Vora the brother of the assessee therefore, no addition can be made in the hand of the assessee. 5. Having considered the rival submissions and careful perusal of the relevant material on record we note that the addition on account of commission income has been made by the AO with respect to the bank deposit of Rs.2,59,65,000/-. As per the details given at page 5 of the paper book the Ld. AR has urged that Rs.2.59 crores is part of the bank deposits in case of Pooja Industrial Corporation which has been considered in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals is allowed. 6. Principally there cannot be a double addition of the same amount when it has already been made in the hand of the assessee s brother. However, this fact that the deposit of cash in the bank account in the case of the assessee has already been considered for addition on account of commission income in the hand of the assessee s brother Shri Naresh Vora is required to be verified at the level of the Assessing Officer. Accordingly, we set aside this issue for limited purpose of verification of this fact whether the amount of deposit in bank in case of the assessee is part of the total amount which was considered for making the addition of unaccounted commission in the hand of Shri Naresh Vora. The AO has to accordingly decide this issue. For the Assessment Year 1994-95 7. The assessee has raised the following grounds as under: 1. (a) On the facts and in the circumstances of the case, the learned CIT(A) erred in confirming taxing commission income of Rs.1,58,240/- being 4% of Rs.39,56,000/- on cash deposits. (b) The learned CIT(A) failed to appreciate that the amount of Rs.11,32,074/- received by appellant s brother Naresh Vora who was doing hawal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial on record. The Ld. AR of the assessee has forcefully contended that there was no fresh loan taken by the assessee during the current year under consideration therefore, no addition can be made u/s 68 when the loan was taken in the earlier years. He has pointed out that the CIT(A) while confirming the addition to the extent of Rs.3,29,342/- has considered the outstanding loan as on 31.3.1993 and 31.3.1995 and not the outstanding loan as on 31.3.1994. 13. Having considered the rival submissions and careful perusal of order of the CIT(A) we note that while confirming the addition of Rs.3,29,342/- the CIT(A) has compared the unsecured loan as on 31.3.1993 to 31.3.1995. Thus, the outstanding balance of unsecured loan as on 31.3.1994 has not been taken into account so as to compare with the unsecured loan as on 31.3.1995 in order to find out any increase of unsecured loan during the year. In view of the facts and circumstances of the case and in the interest of justice we direct the AO to verify this fact whether any fresh loan was taken by the assessee during the year under consideration and if no fresh loan is taken by the assessee during the year under consideration then no addi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
