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TMI Blog2019 (10) TMI 1404X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds of appeal before it is finally disposed off. 3. The only grievance of the Department in this appeal relates to the deletion of addition of Rs. 2,26,30,000/- made by the A.O. on account of cash credit received from M/s Shree Radha Commodity Services. 4. Facts of the case in brief are that the assessee was doing business of trading in Iron and Steel and filed the return of income on 13/10/2008 declaring an income of Rs. 2,07,240/- which was processed under section 143(1) of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). Later on, the A.O. received an information from investigation wing that there was cash deposited in the Bank Account of M/s Shree Radha Commodities Services, out of that funds were being transferred in the account of the assessee firm. The A.O. observed that the copy of account of M/s Shree Radha Commodities Services, in the books of account of the assessee revealed that during the Financial Year 2007-08 relevant to Assessment Year under consideration, peak credits of Rs. 2,26,30,000/- as on 31/01/2008 were given to the assessee who failed to produce evidences to prove the source of cash deposits made in the bank account of M/s Shree Radha Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e made the addition of the aforesaid amount. 7. Being aggrieved the assessee carried the matter to the Ld. CIT(A) who deleted the addition by observing in para 6.2 of the impugned order as under: 6.2 I have considered the observations of the Assessing Officer as made by him/her in the assessment order while making the impugned addition. I have also considered written submissions filed by the assessee firm through its learned AR vide letter dated 02.02.2018 on the issue under reference. I have further considered various judicial pronouncements relied upon by the learned AR of the assessee firm as well as other material placed by him on record. On careful consideration of the assessment order, it has been noticed that the Assessing Officer has made the impugned addition as the assessee firm in the opinion of the Assessing Officer could not explain the source of cash deposits in the bank account of M/s Shree Radha Commodities Services, a sister concern of the assessee firm from whom it has received huge amount during the year under consideration. Another reason for making the impugned addition was that the assessee firm has even failed to produce books of account of M/s Shree Radha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sh. Kaushal Gupta Prop. M/s Shree Radha Commodities Services for the A.Y. 2013-14 has also been completed by ITO, Ward-4(3), Ludhiana under section 143(3) of the Act vide order dated 23.03.2016 on peak assessment basis which means that all the cash deposits in the bank account of M/s Shree Radha Commodities Services have been found to be explained under identical facts. It has again been submitted that even the assessment in the case of Sh. Kaushal Gupta Prop. M/s Shree Radha Commodities Services for the A.Ys. 2011-12 and 2012-13 were also completed by ITO, Ward-5(2), Ludhiana under section 143(3) of the Act vide orders dated 30.12.2013 and 25.02.2014 respectively after making adhoc additions which means that even the cash deposits in the bank account of M/s Shree Radha Commodities Services in these years have also been found to be explained under identical facts. It has again been submitted that once the accounts of M/s Shree Radha Commodities Services have been being accepted by the concerned officers in many years then raising the doubts about cash deposits in the bank account of M/s Shree Radha Commodities Services under identical facts and in the circumstances is illegal and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e outgoings from the same bank account cannot be doubted under any circumstances. Moreover, no addition has been made under identical facts and in the circumstances in the case of the assessee firm in some of the subsequent assessment years although the assessments in those years were also completed under section 143(3) of the Act and the amount transferred by M/s Shree Radha Commodities Services to the assessee firm was even much more in those years. Under such circumstances, the action of the Assessing Officer in making an addition of Rs. 2,26,30,000/- in this case on account of unexplained amount stated to be received from M/s Shree Radha Commodities Services during whole of the year cannot be said to be justified and as such the addition of Rs. 2,26,30,000/- made by the Assessing Officer in this case on account of unexplained amount stated to be received from M/s Shree Radha Commodities Services is, therefore, directed to be deleted. In the result, the ground No. 4 of appeal taken by the assessee firm is allowed. 8. Now the department is in appeal. 9. The Ld. Sr. DR reiterated the observations made by the A.O. and strongly supported the assessment order dt. 23/03/2016. 10. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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