9911796707
TMI Blog2014 (5) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the light of the assessee’s total turnover of ₹ 10.29 crore - It is but natural that if a customer makes cash purchase and lifts the goods, there is no duty cast upon the seller to insist for the address of the purchaser – the assessee has himself offered the amount of cash sales as his income by duly including it in his total sales -once a particular amount is already offered for taxation, it cannot be again considered u/s 68 of the Act - thus, any addition cannot be made by treating cash sales as bogus – Decided in favour of Assessee. Deletion of addition made during search – Held that:- The assessee has stated before the AO that a sum of ₹ 30.62 lacs belonged to Premji Bhanushali and Radha Bhanushali - The fact was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Per R. S. Syal, AM: These two cross appeals-one by the assessee and other by the Revenue along with Cross Objection by the assessee arise out of the order passed by the CIT(A) on 20.12.2010 in relation to the assessment year 2006-07. 2. The assessee s appeal is a recalled matter inasmuch as the earlier exparte order passed 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 Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erusal of the details that except for these four cash memos depicting cash sales totaling Rs. 22,06,672/-, there were no other instances of cash sales. These cash memos did not carry address of the purchaser whereas the other bills did carry proper addresses. It was further observed that these cash memos were in the handwriting of a person different from other invoices. The A.O further noticed that these cash memos did not carry any detail of transporter who carried heavy items like metal. Since, these cash memos were issued 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 mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issuance by the assessee s brother who was there at the time of delivery of goods at stockyard. Relevant extract of the assessee s cash book from 7.6.2005 to 4.10.2005 is available on pages 34 and 35 of the paper book, from which it is clear that the cash in hand of the assessee stood at Rs. 23.10 lacs at the close of 4.10.2005. It is further relevant to note that the assessee was maintaining stock register in respect of the items dealt with by him. A copy of the relevant parts of the stock register is available on pages 44 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for taxation, the same cannot be again considered u/s 68 of the Act. In fact, such addition has resulted into double addition. 7. In view of the foregoing discussion, we are of the considered opinion that the ld. CIT(A) was not justified in sustaining this addition. The impugned order is overturned on this issue and the addition is directed to be deleted. This ground is allowed. 8. First ground of the Revenue s appeal is against the deletion of addition on account of cash seized amounting to Rs. 30.26 lacs. The assessee explained 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 additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of addition of Rs. 19,00,674/- being the amount credited to the assessee s capital account. The facts apropos this issue are that the assessee introduced a sum of Rs. 19,00,674/- as fresh capital in M/s Poonam Enterprises. The assessee was asked to furnish details of such fresh capital vide questionnaire dated 24.3.2008. No reply was given. Again when the assessee was asked to explain the source of such introduction of fresh capital vide order sheet entry dated 22.12.2004, the assessee gave the following explanation which has been reproduced 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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