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TMI Blog2014 (5) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by the tribunal was subsequently recalled vide its order dated 2.12.2011. 3. The only issue raised in the assessee's appeal is against the confirmation of addition of Rs. 22,06,672/-. Briefly stated the facts of the case are that the assessee is engaged in the business of trading in metal, scrap etc. under the name and style of M/s Poonam Enterprises. Some information was received from the Directorate of Revenue Intelligence, Ahmadabad that during the course of investigation into the affairs of Gurukrupa Metal Recycling (in which the assessee is a partner) , Jam Nagar and others, a sum of Rs. 54 lacs was seized on 5.10.2005 from the premises of the assessee. On being called upon to explain the source of such seizure of Rs. 54 lacs, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued a few days before the search was conducted by the DRI on 5.10.2005, the A.O called upon the assessee to clarify such abnormalities. The assessee tendered his reply. Not convinced with the same, the Assessing Officer made addition of Rs. 22,06,672/- u/s 68 of the Act. No relief was allowed in the first appeal. 5. We have heard the rival submissions and perused the relevant material on record. There is no dispute on the fact that the search carried out on 5.10.2005 resulted into seizure of cash amounting to Rs. 54 lacs, whose source was explained as, inter alia a sum of Rs. 23.1 lacs coming from Poonam Enterprises, namely, the assessee's proprietorship concern. The assessee produced his books of accounts to show that this much cash was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 to 49 of the paper book. This stock tally was admittedly before the Assessing Officer, who has not pointed out any deficiency in them. There is no law which prohibits a trader or a manufacturer in making cash sales. The Hon'ble Bombay High Court in R.B.Jessaram Fatehchand (Sugar Deptt) VS. CIT (1970) 75 ITR 33 (Bom) has held that sales can be in cash and it is hardly necessary for the seller to bother about the name and address of the purchaser. We find that so long as the availability of stock is there and there is nothing adverse against the cash memos issued by the assessee, such cash sales cannot be doubted. Here it is pertinent to note that the volume of such cash sales at Rs. 22.06 is to be seen in the light of the assessee's total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xplained the source cash seized amounting to Rs. 54 lacs inter alia including a sum of Rs. 3.62 lacs received from Radha Bhanushali and Rs. 27 lacs received from Premji Bhanushali. The Assessing Officer made addition of Rs. 30.62 lacs (Rs. 3.26 lacs + Rs. 27 lacs) by recording that no confirmation was furnished from them. The ld. CIT(A) deleted this addition by holding that both these persons, namely, Premji Bhanushali and Radha Bhanushali duly confirmed the cash belonging to them. The ld. CIT(A) directed to delete this addition and gave liberty to the A.O to examine the source of cash in the hands of Shri Premji Bhanushali and Radha Bhanushali, who had confirmed the possession and ownership in cash in question. The Revenue is aggrieved aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eproduced in the assessment order:- "During the year capital account of proprietor in increased as he has received personal advances and inducted to the business which in the next year getting settled." 11. The Assessing Officer held that this limited reply of the assessee did not indicate any source of funds introduced as capital. He, therefore, made addition for the said sum u/s 68 of the Act. The ld. CIT(A) got convinced with the assessee's submissions and directed to delete the addition. The Revenue is in appeal against such deletion. 12. After considering the rival submissions and perusing the relevant material on record, it is observed that the Assessing Officer specifically requisitioned the assessee to explain the source of fresh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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