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TMI Blog2019 (8) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... advance received from the customers and corresponding deposits in the bank account. 3. I have heard the rival submissions, perused the relevant material on the record of the Tribunal, inter alia, impugned assessment, first appellate order and written submissions in paper book filed by the assessee spreading over 24 pages. 4. Ld A.R. of the assessee submitted that the CIT(A) has erred in confirming the addition made by the AO amounting to Rs. 29,98,647/- without appreciating the fact and ignoring the explanation offered by the assessee about these impugned advances received from the customers and corresponding deposits in the bank account of the assessee. 5. Ld A.R. vehemently pointed out that the assessee became the dealer of Ford India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder and submitted that the CIT(A) also confirmed the addition ignoring the contention of the assessee that atleast before making the impugned addition, a show cause notice should have been issued to the assessee allowing it to explain its intention to submit requisite documentary evidence. Ld A.R. lastly submitted that the receipts submitted by the assessee before the authorities below clearly states that the amount received by the assessee for booking the vehicles against which bills were raised and PAN and Adhar numbers were also produced by the buyers. Therefore, the identity, purpose and creditworthiness of the customers who had made advance to the assessee is established. Ld A.R. submitted that it was not a transaction of loan but it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to them at the time of receiving advance, their PAN, IDs and details of invoices issued to them which clearly reveals that the impugned amount was nothing but advance received from the prospective customers at the time of starting sales and the same was deposited by the assessee to its bank account, which cannot be treated as unexplained cash credit enabling the AO for making addition u/s.68 of the Act. 8. The point for consideration in this appeal is, whether cash deposits in the State Bank of India by the assessee had been duly explained by him, or not,? It is well settled that wherever a receipt is sought to be taxed as income, the Department is required to prove that the same falls within the taxing provision, and where the receipt i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant documents before the AO and the AO did not pay any attention to them by way of verification and examination regarding the truthfulness of these documents. These documents clearly reveal that the assessee received advances from the customers in the month of March, 2015 i.e. in the month when he started business of Ford car dealership. I further observe that the copies of invoices reveals that the assessee delivered vehicles to the customers during next month i.e. April, 2015 and the at the time of selling and delivering the vehicles, the assessee also obtained copies of their PAN and other ID proof, which clearly revealed from identity, existence and factum of sale of cars to these buyers. As agreed by both the parties, I also test c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isite documentary evidence before the Assessing Officer. Thereafter, he proceeded to hold that the assessee has not filed any application for admission of new evidence during the appellate proceedings and the assessee has also not made out a case that the case of the appellant is covered under any of the exceptions prescribed under Rule 46A and he dismissed the evidences submitted by the assessee. On this point, it is the contention of the ld A.R. that all documentary evidences were submitted before the AO as well as the CIT(A) but same was not considered in right prospective and reasonable manner. Ld A.R. has also pointed out that when documentary evidence was submitted before the AO and again copies of same were submitted during the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 12. I am in agreement with the contention of ld A.R. of the assessee that at the time of inauguration of new business, some customers shows their intention to buy products, which was car in the present case and prospective buyers give advance to the new entrepreneurs not only for the purpose of purchasing car but also to support in the new venture. In this situation, the amount so received as advance against sale of car cannot be treated as cash credit in the hands of the assessee and the AO is not empowered and entitled to trigger any action against the assessee with the support of section 68 of the Act. In this case, the assessee has submitted all details regarding advance received from the buyers/customers in the form of receipts, inv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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