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TMI Blog2017 (9) TMI 1517X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and the documents relied upon by him. The assessee would be given a proper opportunity of hearing. First Ground of appeal is decided in favour of the assessee, in part Unexplained cash credits - AR argued that it was a case of redepositing of cash - Held that:-We find that the order passed by the FAA is not a speaking and reasoned order. In pursuance of the directions of the ITAT the assessee had filed bank statement. The FAA should have dealt with the arguments of redeposit of cash and motor car insurance claim before deciding the appeal. So, we are remitting back the issue to FAA to decide the issue afresh. The FAA would afford an effective hearing to the assessee. Second ground is partly allowed. Allowability of the loss - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income - tax Act,1961 ( Act ) PER RAJENDRA, AM Challenging the order dated 01.11.2013 of the CIT(A)-1, Mumbai, the assessee has filed the present appeal. Assessee, an individual, is engaged in the business of trading in textile goods, filed its return of income at ₹ 73, 379/-on 02.12.1998. The Assessing Officer (AO)completed the assessment u/s. 143(3) on 29.03.2001, determining his total income at ₹ 22.51 lakhs. While completing the assessment, the A.O. made four additions namely, unexplained cash credit(Rs.12.75 lakhs), addition on account of artificial loss claim (Rs.6.06 lakhs), addition on account of short term capital gain (Rs.2.48 lakhs) and cash credits (Rs.48, 500/-). The matter travelled up to the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opportunity of being heard . iii . On the issue of cash credits u / s . 68 of Rs . 48, 500 /- : These entries are related to reconciliation of accounts as such this issue is also sent back to the file of AO for fresh consideration . iv . On the issue of artificial loss of Rs . 6, 06, 392 /-: In light of detailed discussion and direction given in - ground No . 1 above, the issue also requires verification from the AO, therefore, the same is remitted to the file of AO with a - direction - to - decide the issue afresh in accordance with law . 2 . In pursuance of the order of the Tribunal, the A.O. issued notice to the assessee and called for certain details. As per the AO th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O. 3 . 2 . Before us, the Authorized Representative(AR)argued that the opening balance of the capital account, in the balance sheet as on 31.03.2017, in case of G N International was 2.11 crores(Pg.19 of the PB), that same figure was appearing in the individual balance sheet (Pg.21 of the PB), that there was typographical error in the books of accounts, that it was not a case of cash credit, that there was short credit and that same was brought to the notice of the departmental authorities, that there was no entry in the books of account so, provisions of section 68 were not applicable. He referred to the cases of Kharawala(147ITR67); and Baladin Ram(71ITR427)(SC). The Departmental Representative contended that disputed sum was fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined and was to be taxed in the hands of the assessee. 5 . 1 . In the appellate proceedings the FAA held that the assessee had referred to a hypothetical argument, that it had not discharged the onus cast upon him. 5 . 2 . During the hearing before us, the AR argued that it was a case of redepositing of cash, that the assessee had withdrawn ₹ 76, 000/- that it had re-deposited ₹ 10, 000/-, that it had debited towards motor car capital account, that provisions of section 68 were not applicable, he referred to the page No.28 of the paper book. The DR supported the order of the FAA. We find that the order passed by the FAA is not a speaking and reasoned order. In pursuance of the directions of the ITAT the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the stock was lower. He referred to the cases of A. Raman Co.(67ITR11) and Biraj Investment (P) Ltd. (210taxmann418). The DR supported the order of the FAA. 6 . 2 . We have heard the rival submissions and perused the material before us. We find that both the authorities have not doubted that the purchase is made by the assessee, that they had not doubted that the sale made by the assessee, that their objection is about the sale price only, that during the year the assessee had not exported any goods. The purchases were made in the initial phase of AY. and later on same was sold. If the transaction in question resulted in loss same should not be disallowed merely because purchaser was a related concern. We also agree with the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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