9911796707
TMI Blog2019 (8) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... before the AO to substantiate the transactions by them with the assessee so as to explain the cash deposits in the bank account. Considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore the issue to the file of the AO with a direction to give one final opportunity to the assessee to substantiate its case by producing the various parties in question to substantiate the cash deposit in the bank account. Penalty u/s 271(1)(c) - quantum addition restore to AO - HELD THAT:- AO levied penalty on account of addition made by him being unverified cash deposit which has been upheld by the CIT(A) - Since, the quantum addition has been restored to the file of the AO, therefore, the penalty so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash deposited in the bank account. It was explained by the assessee that he was working with Rudra Pharmaceuticals on consignment basis who were having wholesale/retail business in the field of medicine/pharmaceuticals business. Since, the firm has trouble with its overdraft facility at Syndicate bank, they asked the assessee to collect the amount from sundry debtors of the firm and deposit in his saving bank account from which cheques were issued to the suppliers of Rudra Pharmaceuticals. In order to verify the claim of the assessee the AO asked the assessee to file confirmation and produce the proprietor/partner of M/s Rudra Pharmaceuticals. Since, the assessee failed to produce the said party summon u/s 131 was issued. M/s Rudra Pharmac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rties. Some of the parties denied having done the transactions with the assessee and notices to some of the parties were returned back unserved. From the parties who responded to the notices, however, the transaction amounting to ₹ 41,10,000/- only were confirmed by the parties. The appellant assessee was also given opportunity at the assessment stage to produce various parties, which had failed to confirm the transactions. However, the assessee could not produce those parties in support of his contentions. During the remand proceedings also the AO has submitted that the same position remains, even after making further enquiries from the same very parties. Therefore, considering the facts and circumstances of the case, the action of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an opportunity the assessee is in a position to produce the parties before the AO to substantiate the claim that the cash deposited by the assessee in the saving bank account maintained with HDFC Bank is in fact the cash received from those parties. He submitted that in the interest of justice, the assessee should be given one final opportunity to substantiate the source of such cash deposit in the bank account. 6. The ld. DR on the other hand, heavily relied on the order of the CIT(A). 7. I have considered the rival arguments made by both the sides and perused the orders of the AO and the CIT(A). I have also gone through the paper book filed on behalf of the assessee. I find the AO in the instant case mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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