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TMI Blog2023 (1) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... ors. In the instant case, the assessee has failed to produce convincing replies with cogent evidences even for the random sample selected by the Ld. AO. AO is being directed to verify the 69 creditors with regard to outstanding payables from all the sundry creditors and provide one more opportunity to the assessee following the principles of natural justice. Accordingly, we remit the matter back to the file of the Ld. AO and allow this ground no.2 for statistical purposes. Allowance of telescoping against the cash deposits - HELD THAT:- We are of the considered view that the Ld. CIT(A) has rightly considered the telescoping benefit and therefore we find no infirmity in the order of the Ld. CIT (A) on this issue and hence, this ground r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 30/03/2017 set aside the original assessment order and directed the Ld. AO to re-do the assessment de-novo on the lines indicated in his order u/s. 263 after affording a reasonable opportunity of being heard to the assessee. Accordingly, a notice U/s. 142(1) along with a questionnaire was issued on 22/05/2017. In response to the notice, the assessee s representative filed the information as required by the Ld. AO. The assessee was asked to produce confirmations from the various creditors totaling to Rs. 1,55,57,267/-. In response the assessee produced confirmation letters from 7 creditors in his final reply on 28/12/2017. The Ld. AO in the original assessment disallowed a sum of Rs. 7,60,350/- on the basis of verification of sundry credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the addition of sundry creditors totaling to Rs. 1,55,57,267/- the income of the assessee stood by 81% of the turnover which is totally unrealistic. Further, the Ld. AR also pleaded before the Ld. CIT(A) to give the benefit of telescoping with respect to cash deposits on account of sale of husk of Rs.8,77,000/- out of excess cash deposit over the sale consideration of the property held by the assessee amounting to Rs. 25,10,000/-. Considering the various submissions made by the Ld. AR, the Ld. CIT(A) partly allowed the appeal by directing the Ld. AO to delete the addition of Rs. 1,55,57,267/- on account of unexplained sundry creditors and also allowed the telescoping of Rs.8,77,000/- on account of unexplained cash deposits into the bank a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mber any details regarding paddy sold, amount received etc., but confirm that we have sold some paddy and the payment has been received within a period of one month. 5. The Ld. DR therefore pleaded that these statements cannot be relied upon and prayed that the order of the Ld. AO be upheld. Per contra, the Ld. AR argued that the assessee has produced confirmation from 7 creditors out of the total 69 creditors. The Ld. AR also pleaded that the benefit of telescoping shall also be sustained. 6. We have heard both the sides and perused the materials available on record and the orders of the Ld. Revenue Authorities. The Ld. AR could not justify as to why the Ld. AO questioned only 7 creditors out of the total 69 creditors where the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of the addition of undisclosed profit from sale of husk of Rs. 8,77,000/-. Since the generation of undisclosed income from sale of husk represents a source of income and making cash deposits in the bank account represents the application of income, it is held that the assessee is eligible for telescoping of the undisclosed income from sale of husk against the addition of unexplained cash deposits in the bank account of Rs. 25,10,000/-. On the other hand, as the entire cash flow of Rs. 33,55,000/- arising from the sale of apartment has already been given credit while arriving at the quantum of unexplained cash deposits found in the bank account and as the said cash flow is inclusive of the income of Rs. 4,29,750/- arising from the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... affidavit filed by the assessee and submitted that due to serious illness of the assessee s mother in law, the assessee was prevented in filing the CO before the Tribunal within the stipulated time. Further, the Ld. AR also read out the relevant portions from the affidavit filed by the assessee and pleaded that the delay in filing may be condoned and the cross objection filed by the assessee may be admitted. Considering the reasonable and sufficient cause as explained by the assessee in his affidavit filed before the Tribunal, we are of the considered view that this is a fit case for condoning the delay. Accordingly, we hereby condone the delay of 19 days in filing the Cross Objection before the Tribunal proceed to adjudicate the Cross Obje ..... X X X X Extracts X X X X X X X X Extracts X X X X
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