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TMI Blog2022 (12) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... e has been brought out in the return filed in Form E-3, which is also before the AO. On perusal of the order of the Pr. CIT shows that he has referred to this issue, but has not given any specific findings. This clearly shows that the details were before the Assessing Officer and the fact that no addition has been made on this account shows that the AO has found the reply of the assessee to be reasonable and satisfactory. Cash deposits during the Demonetisation period which is identical to chart extracted by the Pr. CIT of the order u/s.263 clearly shows that the closing cash in hand as on 9.11.2016 is Rs.49,03,323.00. The chart clearly shows that this closing cash in hand is nothing but cash withdrawals from the bank account of the assessee. What the assessee has deposited is the amount of Rs.44.25 lakhs is nothing but cash withdrawn from the bank account. This being so, the chart itself is an explanation in respect of cash deposited in the bank account. Clearly, the AO has examined this issue and has not made any addition thereon. This being so, we are of the view that the issue has been considered by the AO in detail and the revision proposed by the Pr. CIT is only on pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld Pr. CIT has proposed his revision u/s.263 in respect of valuation of closing stock. In regard to purchases and sales, it was the submission that before the Pr. CIT and the AO that the assessee had produced the monthwise break up of purchase and sales. It was the submission that the Pr. CIT observed that the month-wise purchase showed a figure of Rs.14.60 crores and the Profit and loss account showed only Rs.7.98 crores. It was the submission that this variation was on account of purchases like explosions, tools and tackles, engine and pump, repairs and maintenance and consumables, etc.. Ld AR drew our attention to pages 55 56 of PB, which was break up of various purchases of non-sale items. It was the submission that these were basically consumables. This was shown under the various heads for consumables. It was the submission that this was also examined by the Assessing Officer and no adverse view had been drawn by the Assessing Officer. It was the submission that this issue was also raised by the Pr. CIT on presumptions. In regard to issue being deposit of cash during demonetization period, it was the submission that the issue was examined in detail by the AO during scrutiny ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valuation of closing stock were also submitted, the certified copy of which is placed at Pages 50-52 of Paper Book which was duly verified with the method of valuation consistently followed by the assessee and was accepted. (ii) Variation in Purchases in Trading Account That the LAO issued Notice U/s. 142(1) of the Act along with questionnaire, copy of which is placed at Pages 31-34 of Paper Book. The query was raised at para 10 16(page 33 of paper book). The assessee submitted its reply along with the documents placed at Page 42 of Paper Book and subsequently the documents in respect of Entry Tax on purchases vis-a-vis Purchases of Raw Materials were also submitted, certified copy of which is placed at Pages 54-92 of Paper Book. The same were duly verified and concluded by the LAO that the variation between data of Entry Tax and Purchases of Raw Materials was nothing but the entry tax paid on other purchases also like Explosives, Tools Tackles, Engine Pump Repairs Maintenance, Consumables like Lubricants, Packing Materials Gunny Bags, Stores Consumables, Grinding Media , and others as per Manufacturing Trading Account and was accepted after due verification with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .s.263 of the Act is directed to be cancelled and for such act of kindness the appellant shall ever pray. 4. In reply, ld CIT DR submitted that a perusal of the query raised by the AO in respect of issue of closing stock, as raised in his notice issued u/s.142(1) of the Act shows that the query is in para 10 of the notice. It was the submission that the said query was only quantitative details. It was the submission that the basis for valuation had not been called for by the Assessing Officer. It was the submission that the basis was also not explained in respect of closing stock. It was the submission that the Pr. CIT was right in revising in respect of the issue. It was the further submission that in respect of purchase and sales, month wise details were called for. There was variation in the purchases as shown in the month-wise details and in the profit and loss account. It was the submission that this should have been drawn attention of the Assessing Officer. There is nothing on record to show that the Assessing Officer has examined this issue. It was the further submission that in respect of deposit of cash during demonetization period, the Assessing Officer has not examin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been brought out in the return filed in Form E-3, which is also before the AO. On perusal of the order of the Pr. CIT shows that he has referred to this issue, but has not given any specific findings. This clearly shows that the details were before the Assessing Officer and the fact that no addition has been made on this account shows that the Assessing Officer has found the reply of the assessee to be reasonable and satisfactory. 7. Coming to the issue of cash deposits during the Demonetisation period, on perusal of paper book page 102, which is identical to chart extracted by the Pr. CIT at pages 7 8 of the order u/s.263 clearly shows that the closing cash in hand as on 9.11.2016 is Rs.49,03,323.00. The chart clearly shows that this closing cash in hand is nothing but cash withdrawals from the bank account of the assessee. What the assessee has deposited is the amount of Rs.44.25 lakhs is nothing but cash withdrawn from the bank account. . This being so, the chart itself is an explanation in respect of cash deposited in the bank account. Clearly, the AO has examined this issue and has not made any addition thereon. This being so, we are of the view that the issue has been co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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