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TMI Blog2016 (11) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... it has not been disputed that the corresponding purchases are not shown in the seized record. Consequently they remained unaccounted. In view thereof, ld. CIT(A) has rightly appreciated the issue and held the entire unaccounted sales to be unaccounted income as the purchases expenditure are not found recorded. Apropos Pankaj Somabhai Prajapati, ld. CIT(A) in his order has given proper calculation and established that the source of loan of ₹ 18,81,429/- remained unexplained. Assessee, except making general comments, could not objectively prove that the assessee’s prima facie onus in respect of this loan was satisfactorily discharged. Assessee appeal dismissed - IT(SS)A No. 348 & 349/Ahd/2012, 350/Ahd/2012, 351/Ahd/2012 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arch u/s 132 of the Income-tax Act was carried out on Prajapati Group on 08.12.2009. A joint disclosure of undisclosed income was made by these assessees. However, Assessing Officer found various discrepancies and made the aforesaid additions. 3.1 Aggrieved, the assessees preferred first appeals where the above additions qua cash flow were agitated and in case of Somabhai for AY 2005- 06 treatment of entire unaccounted sales as income was challenged with an alternative plea that GP rate may be adopted. 3.2 Ld. CIT(A) dismissed the contention qua the 1/3rd difference of cash flow entry by following observations in the case of Shri Somabhai A. Prajapati and Shri Chandulal :- 4. I have considered the submissions of the appellant. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be mentioned that the books of accounts were not maintained by the appellants. It was only after the date of search that the appellant tried to prove the source of investments in land out of the sale proceeds of their agricultural land. For doing so, an attempt has been made to show maximum cash balance available with them in the form of opening cash balance on the cash received by way of sale of land so that they can explain the investments in land. If the contention of the appellant is accepted then all the withdrawals made prior to April 2003 should also have been considered as opening cash balance as on 1/4/2003. Non-maintenance of books of accounts cannot be advantageous to the appellants as against those persons who are maintaining b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, if all the purchases are accounted for by the appellant and some of the sales are not accounted for, in that case, the unaccounted sales will form part of the total sales and accordingly the income would be increased by the amount of unaccounted sales. Since in this case, there is evidence of only unaccounted sales, in my considered view, the whole unaccounted sale is liable to be added as the unaccounted income of the appellant. The decisions relied upon by the appellant are in respect of those cases where the evidence of unaccounted purchases as well as unaccounted sales were found. Therefore, the case laws relied upon by the appellants, are not applicable here. 3.4 In the case of Shri Pankaj Somabhai Prajapati, the addition wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 6.2. Even if it is accepted that the appellant had his share of income of ₹ 36,52,071 + ₹ 19,66,500+Rs.10,00,000 = ₹ 66,18,571, then the source of the loan of ₹ 85 lakh given by the appellant can be treated as explained up to ₹ 66,18,571/-. In other words, the source of loan of ₹ 18,81,429/- remains unexplained. In short, even though there could have been cash balance with the family of the appellants on 1/6/2008 as per the fund flow statement, the available cash belonging to the appellant was only ₹ 66,18,571/- (which is the share of the appellant), the appellant can at the most get the benefit of this amount of ₹ 66,18,571/- in his fund flow statement. In other words, the addition o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the findings of CIT(A) are pure finding of facts on the peculiar facts and circumstances of these cases, therefore, the case laws cited by assessee being on different facts cannot be applied in the absence of factual parity. 6. I have heard the rival contentions, perused the material available on record and gone through the orders of the authorities below. Adverting to the appeals of Somabhai Ambaalal Prajapati Chandubhai Ambalal Prajapati for AY 2004-05, the assessees could not explain as to how the amount of ₹ 5 lakhs withdrawn from the common bank account was utilized. Looking at the entire facts and circumstances, the issues were to be decided on surrounding circumstances and human conduct. The burden to prove the cash e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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