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TMI Blog2014 (8) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... mitation - the matter requires a fresh examination in view of the fact that same amount has already been treated by the AO as cash sales belonging to M/s. Deluxe Karran Imports Pvt. Ltd. and an income @ 6% has been assessed in the hand of M/s. Deluxe Karran Imports Pvt. Ltd. – thus, the matter is remitted back to the AO for fresh adjudication – Decided in favour of Asseessee. Penalty u/s 271(1)(c) – Held that:- Since the matter in quantum appeal has been set aside to the record of AO, the penalty would not survive - the penalty levied u/s 271(1)(c) is set aside – Decided in favour of Assessee. - ITA No. 3415 & 3414/Mum/2012 - - - Dated:- 23-7-2014 - Shri Vijay Pal Rao And Shri D. Karunakara Rao,JJ. For the Petitioner : Shri Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the CIT (A) has resulted in addition of the deposits in the bank accounts of the appellant arising from regular business transactions of the appellant which could not be considered as unexplained cash credits and consequently income of the appellant. 2C. Without prejudice, the appellant prays that in case the explanation of the appellant with regards to the bank transactions is not accepted then the peak of all the bank transactions, debit as well as credit be considered and addition restricted to the said amount only. 2D. Without prejudice, the appellant prays that addition be restricted to the income of the appellant for the year under appeal. 2. The ld. AR of the assessee has submitted that the CIT(A) has dismissed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Minesh D. Shah of M/s. Deluxe Kaaran Imports Pvt. Ltd. In support of his contention he has referred to the assessment order of M/s. Deluxe Kaaran and submitted that the AO has held that M/s. Viva Overseas and M/s. East India Trading Co. are fictitious concerns of M/s. Deluxe Kaaran Import Pvt. Ltd. and are only conduit for legalizing cash sales. The cash deposits routed through these two concerns includes ₹ 8.32 crores in the bank account of M/s. Viva Overseas and ₹ 14.76 crores in the bank account of M/s. East India Trading Co. from the period 2002-03 to 2006-07 were treated as unaccounted sale of M/s. Deluxe Kaaran Imports Pvt. Ltd. The AO assessed the profit @ of 6% of the total cash deposit in these two accounts in hand of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for delay in filing the appeal before the CIT(A) is a bonafide explanation or it is a device to cover an ulterior purpose or an attempt to save the limitation in an underhand way. Since the assessee has filed an affidavit to explain the delay and non availability of the funds, this Tribunal vide order dated 26/09/2013 directed the AO to file the report on the facts explained by the assessee in the affidavit. The AO filed the report dated 17/02/2014 wherein it has been accepted that the amount of ₹ 8.32 crores and ₹ 14.76 crores in the bank accounts of M/s. Viva Overseas and M/s. East India Trading Co. respectively was treated as unaccounted cash sales of M/s. Deluxe Karran Imports Pvt. Ltd. The AO has concluded its report by inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... izing cash sales. The A.O analyzed the bank statement of all such fictitious concerns and profit @ 6% of the total cash deposits routed through dummy concerns.. M/s. Viva Overseas and M/s East India Trading Co. had introduced ₹ 8.32. crore from the account of Viva Overseas and ₹ 14.76 crore from East India Trading Co. from period 2002-03 to 2006-07. On appeal the ld. CIT(A) 36 Mumbai reduced the estimation of GP from 6% to 0.30%. the ITAT H-Bench has upheld the decision of CIT(A). 5.2 We further note that in the assessment order for the assessment year 2007-08 of M/s. Deluxe Karran Imports Pvt. Ltd. the AO treated the cash deposit in the bank account interalia of M/s. Viva Overseas and M/s. East India Trading Co. as cash s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord. CIT(A) has not decided the appeal of the assessee on merits as it was dismissed in limine on the ground of limitation. Further the matter requires a fresh examination in view of the fact that same amount has already been treated by the AO as cash sales belonging to M/s. Deluxe Karran Imports Pvt. Ltd. and an income @ 6% has been assessed in the hand of M/s. Deluxe Karran Imports Pvt. Ltd. Accordingly we set aside the matter to the record of AO to decide it afresh after considering the assessment made in the case of M/s. Deluxe Karran Imports Pvt. Ltd. ITA No. 3414/Mum/2012 7. In the penalty appeal the assessee has raised the following grounds:- On the facts and in law, 1. The learned CIT(A) erred in dismissing the appeal w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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