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TMI Blog2021 (6) TMI 849X X X X Extracts X X X X X X X X Extracts X X X X ..... 15-16. 2. The grounds of appeal raised by assessee read as under: "Addition on account of unexplained cash deposited in the bank account of Rs. 27,20,249/- The Hon'ble CIT (Appeals)-2, Ahmedabad has erred in law and on facts by confirming the addition of Rs. 27,20,249/- made by Ld. Assessing Officer for the sale of agriculture produce being sold to Dariyalal Aloo Bhandar to whom the assessee sold the agriculture produce and the bill for the same was produced to the Ld. CIT(A). However, The notice sent to the said party has been returned unserved with the remark "Shop Closed". The method of purchasing and sale of agriculture produce like potato comes to the farm and make the payment against the delivery which in legal sale-transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erification to the AO and AO issued notices to both parties above u/s. 133(6) of the Act. Out of the above amounts, the CIT(A) eventually accepted the amount of Rs. 25,21,693/- as explained Income on the basis of the reply received from Noor Traders about the transactions. However, another notice u/s. 133(6) of the Act issued to Dariyalal Aloo Bhandar was returned undelivered due to closure of shop. Consequently, while the CIT(A) allowed the source of cash received from Noor Traders towards sale of potato amounting to Rs. 25,21,693/- as explained, the addition towards other amount of Rs. 27,20,249/- was confirmed owing to non-confirmation from Dariyalal Aloo Bhandar. It was also observed that individual share in land is not sufficient to pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e closed his shop due to losses to him and is absconding since then. In fact the Survey u/s. 133(6) is conducted by a notice which is issued after several years after the date of transactions made, which is received back unserved due to "SHOP CLOSE", thereafter, AO did not bothered for verifying the fact by physical visit of the place and to inquire about the fact, whereas he have made mere assumption that the party never exist and have treated the amount of sale to such party as unexplained. (iv) The Dariyalal Aloo Bhandar has closed the business since 2016 in confirmation of this fact the assessee submits the affidavit (Panchnama) (produced herewith along with translation in English) from surrounding farmers who are aware of the fact th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has relied upon the order of the AO and pointed out that assessee has failed to prove the source of the cash deposits and explanation offered towards cash deposit does not pass the test of human probabilities and surrounding circumstances. 7. On weighing the rival contentions, we find considerable merits in the plea raised on behalf of the assessee. It is noticed that assessee is having sufficient land alongwith other family members to support the case of cultivation of potato sold. The CIT(A) has accepted the fact of production of potato and has taken the receipt of cash from one of the parties (Noor Traders) as explained. The CIT(A) has rejected the source of cash from other party (Dariyalal Aloo Bhandar) primarily on the ground of lack ..... X X X X Extracts X X X X X X X X Extracts X X X X
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