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TMI Blog2022 (6) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... and also selling the same for earning is primarily accepted. There is no question about the existence of the business. The only issue is the cash generation for depositing in the bank account. It is to be directed that the issue should be further re-examined by the learned CIT(A) taking cognizance of the documents filed by the Assessee and a reasonable opportunity be allowed for cross-examinations related to the four parties. Thus, we direct to set aside the matter before the learned CIT(A) de novo for further consideration of the issue. Furthermore, a reasonable opportunity should be given to the Assessee for his contention. Appeal of the Assessee allowed for statistical purposes. - I.T.A. No. 1640/Chny/2019 - - - Dated:- 27-5-2022 - S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatements were relied on in the remand report dated 16.01.2019. 2.3. The CIT(A) failed to furnish the copies of the statement recorded from the four persons in the remand report dated 16.01.2019 of the assessing authority before relying on the same for passing the appeal order. 2.4. The CIT(A) ought to have appreciated that the adverse material should be provided to the appellant before placing reliance on the same, failing which the order of the appellate authority is in violation of principle's of natural justice. 2.5. The CIT(A) failed to see that violation of the principles of natural justice renders the entire order a nullity in the eyes of law. 3. Addition of cash deposit (Rs. 78,40,000/-): 3.1. The CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nexplained u/s. 69A of the Income Tax Act, 1961 and the Assessing Officer completed the assessment vide an order dated 28.12.2016. The CIT(A) sought for a remand report wherein the Assessing Officer summoned a list of customers out of which three customers deposed statements which were neither produced before the Assessee nor an opportunity of cross examination was provided. The CIT(A) confirmed the order of assessment. 3. Subsequently, after the Order of the CIT(A) was passed, the Assessee with the help of the Chartered Accountant prepared a cash-flow summary along with the monthly cash-flow and statement of receipts and payments to co-relate the same with the cash deposits in the bank accounts. It is submitted that these cash flow su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee submitted the cash-flow statement as an additional evidence which is annexed in Page No. 73 of the paper-book. 5. The learned Departmental Representative pointed out that during the appeal proceedings, the remand report was called for wherein the Assessee submitted six names for verification whoh purchased the milk from the assessee. Out of the six names, three persons had denied the transaction confirmation letters. One party confirmed that he purchased the milk only two liters. All four parties made contradictory statements in relation to submission of assessee. Hence, the source of the cash was not having any evidentiary value. Accordingly, the learned Departmental Representative relied on the appeal order, Point No. 6 at P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y trading. Only on the subsequent date 26.12.2016, the AR for the first time explained the source of cash deposits as income from milk business and stationery trading. This shows that the above claim is clearly an afterthought. 4. In remand proceedings, the AO conducted cross verification to examine the veracity of the claim in respect of all the six customers as per the list and confirmation letters submitted by the Appellant during the appeal proceedings. Out of the six customers, three customers, viz. Shri Mohd. Ali, Shri M. Gopalakrishnan and Shri. C.K. Ashokan appeared and deposed on oath before the AO that they did not issue any confirmation letter to the Appellant and the said letter filed by the Appellant is not genuine. Shri G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers do not contain any details of the transactions with the Appellant and the period and details of payment, etc. It is clear from these letters that they are not reliable and deserve to be not accepted as evidence in support of the source of huge cash deposits in the bank accounts of the Appellant. 6. The Appellant has not been able to establish that the withdrawals made are re-deposited in the bank accounts. There is no clear link between the above. This is not a case where peak credit can be estimated for the purpose of assessment. In the above facts and circumstances, as the Appellant failed to satisfactorily explain the source of cash deposits with credible evidence in support of the claim of source of income, the addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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