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TMI Blog2017 (8) TMI 925X X X X Extracts X X X X X X X X Extracts X X X X ..... ned income of the assessee. Since the assessee has duly explained the source of complete cash deposit made during the year, the addition made by the AO and sustained by the Ld. CIT(A) is bad in law and liable to be deleted. Therefore, we delete the addition in dispute and allow the ground raised by the assessee. - ITA No. 6628/DEL/2013 - - - Dated:- 22-8-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Assessee : Sh. Ved Jain, Adv. Sh. Ashish Chadha, CA For The Department : S h. Sharavan Gotru, Sr. DR ORDER PER H.S. SIDHU, JM Assessee has filed the Appeal against the Order dated 25.9.2013 passed by the Ld. Commissioner of Income Tax (Appeals)-XI, New Delhi pertaining to assessment year 2007- 08. 2. The grounds raised by the assessee read as under:- 1. That on the facts and circumstances of the case and in the law, Ld.CIT(A) has erred upholding the additions of ₹ 10.00 lacs U/s Income Tax Act,1961 in as much as he did not bring any material on record against assessee in respect of cash transactions of ₹ 10.00 lacs which was deposited by appellant assessee in her bank account from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e books of accounts wherein the transaction in question were found duly recorded. Hence the allegation that the genuineness of the cash ₹ 10.00 lacs remained unexplained is prima facie contrary and factually incorrect. Moreover, Ld.CIT(A) failed to appreciate the same. 8. That on the facts and circumstances of the case and in the law, Ld.CIT(A) also failed to examine the said additions in light of the materials available on records. He ought to have recorded his finding on the violation/application of the provisions of Section 69A when he went to confirm the addition of ₹ 1O.OO lacs. 9. That on the facts and circumstances of the case and in the law, the assessee has substantiated her source of deposit ₹ 10 lacs but the Assessing officer without bringing any material contrary on records made the additions ₹ 10.00 lacs which was illegal and unwarranted and liable to be deleted. However, Ld.CIT(A) also failed to give definite observation in this regard. 10. The appellant craves leave to add, alter, amend or to modify any of the grounds either before or at the time of hearing of this appeal. 3. The brief facts of the case are that the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 10.00 lacs U/s Income Tax Act,1961 in as much as he did not bring any material on record against assessee in respect of cash transactions of Rs.l0.00 lacs which was deposited by assessee in her bank account from the sales proceeds. He further stated that Ld.CIT(A) did not examine the complete materials and records available before him in respect of sale, purchase, cash transactions and bank transactions relating to the appellant/ assessee's business as is evident by the observation and findings recorded in this impugned order. The finding recorded as per impugned order are wrong and contrary to the facts available as per documents (i.e. for example the sale of SARIA was done to an identical party whose name and address is appearing on the Invoice itself whereas Ld.CIT(A) wrongly observed that the buyer of the SARlA was not identifiable. The finding given by Ld.CIT(A) are perverse and factually incorrect which render the Order passed by Ld.CIT (A) erroneous and illegal. It was the further contention that the additions of ₹ 10 lacs which was taken by Assessing Officer was neither discussed nor deliberated upon by the Ld. CIT(A) correctly. The observation made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le entered into for the sale of plot in Haryana alongwith relevant documents copy of bank statement as on 30.9.2006, 31.12.2006 and 31.3.2007 of Kanika Rathi; copy of letter filed before CIT(A) dated 14.3.2012; copy of remand report dated 16.4.2012 issued by AO; copy of rejoinder dated 21.5.2012 submitted by the Assessee before the Ld. CIT(A) on 31.5.2012; copy of remand report dated 22.11.2012 issued by the AO. In view of the above, he requested that the addition sustained by the Ld. CIT(A) may be deleted and the appeal of the assessee may be allowed. 7. On the other hand Ld. DR relied upon the order of the Ld. CIT(A) and stated that he has passed a well reasoned order which does not need any interference. 8. We have heard both the parties and perused the relevant records available with us, especially the orders passed by the revenue authorities and the Paper Book filed by the ld. Counsel of the assessee containing the pages 1 to 57 in which he has attached the copy of acknowledgement of return of income alongwith computation of income for AY 2007-08; copy of reply dated 16.12.2009 submitted by the assessee before the AO; copy of profit and loss account for the year ended on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, the balance amount of ₹ 10,00,000/- was added to the income of the assessee. We find that as regards the amount of ₹ 10,00,000/- is concerned, the assessee has filed the complete details with regard to the same before the AO. The cash was received by the assessee on account of her business of trading in steel, as explained in reply dated 16.12.2009 (PB 4-5). The assessee also submitted complete cash flow statement for the year under consideration (PB 7-8), which proves the fact that the assessee had sufficient cash in her hand throughout the year, which was deposited in the bank account. The assessee further submitted copies of invoices issued by M/s Rathi Re-Rollers (India) Ltd. and MIs Rathi Steel Trading Co. (PB 9 - 40) in respect of the purchases made during the year. In order to prove the genuineness of the sales made, the assessee also submitted a list snowing the cash purchases along with the corresponding cash sales made (PB 41). Also, the assessee duly submitted the confirmations (PB 42 - 48) from various parties from whom the assessee has received cash during the year under consideration. We further note that Ld. CIT(A) called for a remand report from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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