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TMI Blog2022 (5) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... , has not been accepted in absence of original cash book for verification. In our opinion, in absence of original cash book produced by the assessee, the Ld. CIT(A) is justified in upholding the addition for negative cash balance observed in cash flow statement filed during the course of assessment proceeding. We do not find any error in the order of the Ld. CIT(A) on the issue in dispute and we accordingly uphold the addition made under section 68 of the Act for negative cash balance observed in all the three assessment years. Assessee appeal dismissed. - ITA No. 4182/MUM/2017 And ITA No. 4183/MUM/2017 And ITA No. 4184/MUM/2017 - - - Dated:- 28-4-2022 - Shri Om Prakash Kant (Accountant Member) And Shri Sandeep Singh Karhail (Judicial Member) For the Assessee : None For the Revenue : Mr. C.T. Mathews, DR ORDER PER OM PRAKASH KANT, AM These three appeals by the assessee are directed against three separate orders, each dated 16/02/2017, passed by the Ld. Commissioner of Income-tax (Appeals)-44, Mumbai [in short the Ld. CIT(A) ] for assessment year 2007-08; 2008-09 and 2009-10 respectively. As common issue of dispute is involved in these appeals, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es Tax Department website. The assessee was asked to show cause as to why the entire amount of Rs. 1,64,45,105/- should not be treated as unexplained expenditure U/s.69C of the Act, 1961. In reply to the show cause issued the assessee submitted that the purchase transactions are genuine and he had received actual delivery of goods. The A.O. however did not accept the contention of the appellant and added Rs.1,64,45,105/- u/s.69C of the Act. 4.2 During the course of appeal proceedings, the appellant filed written submission. The gist of the argument put forward by the appellant in the written submission can be summarized as below: - 1. The appellant has made real purchases. 2. The appellant has made payments for the disputed purchases through proper banking channels. 3. The AO has not brought any evidence on record by his own enquiry and has simply relied on the names as appearing in the list of suspicious dealers published by the sales tax department. 4. The appellant had filed complete details of purchase and sales before the AO. 5. It was also stated that there cannot be sales without purchases. 6. The appellant also relied on many judgments of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Allahabad High Court in the case of CIT Vs Jagdish Prasad Tewari 220 Taxman 0141 (2014), it has been held that if the payments have been made by cheques and are reflected in the books of account of the assessee, no adverse inference can be drawn. 4.6 It has been held in the case of M/s. Nikunj Enterprises 372 ITR 619 (Bom) by the Hon'ble Bombay High Court that merely because the suppliers have not appeared before the Assessing Officer or the CIT(A), one cannot conclude that the purchases were not made by the respondent-assessee. Further it has been held in the case of Saraswathi Oil Traders vs. CIT 254 ITR 259 (Supreme Court) that when the sales have not been doubted then there was no question to doubt the purchases and the addition should have been made only to the extent of gross profit. To this extent, I am in agreement with the appellant that if the appellant has fulfilled his onus of making the payments by banking channels and has supplied the address of the sellers, then it cannot be presumed that the sellers were bogus simply because the sellers were not found at the given addresses. However, at the same time it cannot be said that the information provided by the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 24.01.2013. As per assessment order it was noticed during the course of survey that the assessee has made cash deposits in his bank account totaling upto Rs.46,39,000/-. The AO asked the assessee to explain the nature and source of the cash deposits in the bank account. The appellant furnished the cash flow statement before the AO and also submitted daily cash summary for the period 01.04.2006 to 31.03.2007. On verification of the daily cash summary it was noted by the AO that after considering the closing balance of AY 2006-07 as Rs.6,57,284/- there is negative cash balance to the extent of Rs.37,28,276/- for which the assessee has not filed any explanation. The AO treated the negative cash balance as unexplained cash credit us 68 and added Rs.37,28,276/- to the total income of the appellant. 5.2 During the course of appeal proceedings, written submission was filed by the appellant. It was stated that as per cash book submitted by the appellant in the office of the assessing officer the cash balance was positive. The appellant also submitted copy of daily cash register and summary before the undersigned. Since there was an apparent contradiction in the view taken by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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