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TMI Blog2020 (6) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... er details. CIT(A) has rightly appreciated the evidence filed by the assessee and considering them to be sufficient enough to prove identity, genuineness and creditworthiness of the loan transactions. We, therefore, find no reason to interfere in the finding of Ld. CIT(A) deleting the addition. Addition on account of Chukara Khata - HELD THAT:- The transactions are not directly between the assessee and the farmers but are through the Mandi and the employees of the Mandi maintain complete records of the transactions entered into between assessee and farmers. Generally the payments are to be made on the same date but it s strictly compliance is very hard to achieve. Ld. Counsel for the assessee has referred to various instances in the form of Newspaper cutting placed at page 18 of the paper book showing that payments to farmers remain outstanding on various occasions Even otherwise revenue authorities have not doubted the genuineness of the purchase and have not rejected the books of accounts. We, therefore, in the given facts and circumstances of the care, are of the considered view that there is no infirmity in the detailed finding of the Ld. CIT(A), and therefore, the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts and in the circumstances of the case, ld.CIT(A) was justified in deleting the addition of ₹ 89,74.337/made on account of Chukara Khata ignoring the findings of AO in assessment order and remand report. (4) Whether on the facts and in the circumstances of the case, ld. CIT(A) was justified in deleting the addition of ₹ 4,22,283/made on account of various expenses ignoring the findings of AO in assessment order and remand report. (5) Whether on the facts and in the circumstances of the case, ld.CIT(A) was justified in deleting the addition of ₹ 84,183/- made on account of freight expenses ignoring the findings of AO in assessment order and remand report. (6) Whether on the facts and in the circumstances of the case, ld. CIT(A) was justified in admitting the additional evidences in violation of provisions of Rule 46A even when sufficient opportunity was given to assessee during assessment proceedings. 3. Brief facts of the case as culled out from the records are that the assessee is the proprietor of M/s. Amar Trading Company engaged in the business of trading in garlic and other products. Return of income declaring income of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant recorded the sales made and payment received in the books of account. These are the regular business transaction which has been reflected in the books of account of the appellant. The advance received is not a loan from the above party. The confirmation received from the above party has been forwarded to the AO for his comments. The AO has not pointed out any defect in the confirmation filed. Therefore the addition made by the AO amounting to ₹ 18,44,404/_ is deleted. Therefore, the appeal on this ground is Allowed. 9. From perusal by the above finding of Ld. CIT(A) and also going through the paper book, we observe that assessee has a regular trading account of M/s Sona Trading Company to which regular sales are made and payments received through banking channel. The revenue authorities have not raised any question on the genuineness of the transactions. We, therefore, find no inconsistency in the finding of Ld. CIT(A) and the same is upheld. Ground no.1 of the revenue s appeal is dismissed. 10. Apropos to Ground No.2: wherein the revenue is aggrieved with the deletion of addition of unexplained/unsecured loans/cash credit of ₹ 32,40,040/-, ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Abhinandan Marketing ₹ 70,000/- ii. Nagulal Chandmal (HUF) ₹ 1,50,000/- iii. Praveen Nahta ₹ 2,40,000/- iv. Ragesh Kumar Babulal ₹ 50,000/- v. Rekha Surana ₹ 1,00,000/- vi. Teena Pankaj Kumar ₹ 50,000/- Total ₹ 6,60,000/- The appellant furnished the loans confirmation along with PAN No. and address in respect of the above persons. Most of the loans from the above parties except at the serial no. 2 5 are old loans. The appellant received and repaid the loan through banking channel. In the remand report also the AO has not commented adversely. Therefore, the addition made by the AO amounting to ₹ 6,60,000/- iss Deleted. Therefore, the appeal on this ground is Allowed. 5.4 Ground No.4:- Through this ground of appeal the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments to the farmers have to be made instant at the time of purchase itself but the assessee had showed payments in the subsequent months as per the availability of cash in the books. He, thus, interpreted that unaccounted money was used to pay the farmers at the time of purchase. He, thus treated the purchase of April month as a peak and made the addition for unexplained cash credit u/s 68 of the Act at ₹ 89,74,337/-. When the matter came up before the Ld. CIT(A), he after examining the working of the assessee, its process of making purchase through Mandi and making the payments have analysed the transactions and after placing reliance on the judgment of Hon ble High Court of Jammu and Kashmir in the case of International Forest Co. vs. CIT (1975) 101 ITR 821 (J K). The Ld. CIT(A) deleted the addition of ₹ 89,74,337/- made on account of unexplained Chukara Khata observing as follows: 5.5 Ground No.5:- Through this ground of appeal the appellant has challenged the addition of ₹ 89, 74,337/- on account of chukara khata. The AO made the addition on the ground that the appellant was required to make the payment to the farmers on the same date of purchase. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horities to prove that the assessee has made more profits than returned . The AO in this case purely assumed that the appellant has made the payment to the farmers from his undisclosed cash and manipulated the accounts without bringing anything on record. Therefore, the AO is not justified in making the addition on account of outstanding balances in the name of the farmers. Therefore, the addition made by the AO amounting to ₹ 89, 74,337/- is Deleted. Therefore, the appeal on this ground is Allowed. 14. After going through detailed finding of facts by Ld. CIT(A) and also observing that the assessee is having a consistent style of doing business in this manner wherein the assessee purchase agricultural produce from auction yard of the Mandi and receives slip having name and address of the farmers, rate and quantity of item purchased. The transactions are not directly between the assessee and the farmers but are through the Mandi and the employees of the Mandi maintain complete records of the transactions entered into between assessee and farmers. Generally the payments are to be made on the same date but it s strictly compliance is very hard to achieve. Ld. Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade an ad hoc disallowance. We, however on going through the assessment order observe that after the case was selected for scrutiny there was no compliance on the part of assessee or his Authorised Representative to the notices of the Ld. Assessing officer on 15.02.2016, 10.08.2016, 06.09.2016, 18.10.2016 and 08.11.2016. Thereafter on 21.11.2016 some details were filed. Again the assessing officer requested the assessee/ authorized representative to furnish remaining information but again there was no compliance on 26.11.2016, 05,12.2016 20.12.2016. Since the case was getting time barred for want of completion of assessment proceedings on 31.12.2016, the assessing officer had no option except to frame the assessment on 23.12.2016. Thus, on repeated occasions assessee had not furnished the details of various expenses claimed in the profit and loss account. There is a general plea taken on the part of the assessee that books of account were audited and no instance of non- genuineness of the expenses has been found but in the instance case on repeated occasions assessee made a default by not furnishing the details and thus not allowing the assessing officer to carry out the examinat ..... 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