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TMI Blog2023 (3) TMI 1229X X X X Extracts X X X X X X X X Extracts X X X X ..... 43(3) of the Act on dated 25.12.2019. The assessee has raised the following grounds which are read as under:- "1. That the Ld. A.O unlawfully made 8s worthy CIT(A) unlawfully confirmed an addition of Rs. 79,04,500/- to the returned income being the amount of cash deposited in two banks of Assessee firm during demonetization period although the cash deposit were duly recorded in regular books of account which had been duly audited by qualified chartered accountant & cash had been generated from genuine cash sale. 2. That during Inspection by Excise and taxation department on 02.11.2016, which is before the date of demonetization i.e 09.11.2016,the figure of sale given to the Excise & Taxation Department and mentioned in their order was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with relevant documents which are kept in the record. The assessee explained that the first issue related to deposit of cash Rs.79,04,500/- is fully supported by the sales during the period. The assessee first invited our attention on report of survey which was conducted in the business premises of assessee by the Excise and Taxation department, Punjab which was taken placed on 02.11.2016 i.e. before the start of demonetisation period effect from 09.11.2016. During course of inspection the order book, sale bill filed, purchase bill filed, loose paper are seized by the State Revenue. In addition. the physical stock verification was also conducted by the survey team and stock amounting to Rs.1,24,72,999/- was found during survey proceeding on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and Taxation department of Punjab. In the order of the state authority specifically mentioned that the stock counted by the state authority related to M/s S.B. Brothers and M/s Shivam Industries which are the business entity of the assessee. The relevant paragraph of the order of the state authority is reproduced as below: 5.1 We find that the assessee has a sufficient stock to convert in sale. Accordingly, the source of cash was explained which are generated from the sale of goods. The ld. AO pointed out that the sales are made by cash. The ld. Counsel placed that the stock of assessee was never be disputed. We respectfully relied on order of Hon'ble High Court of Delhi in the case of Principal Commissioner of Income Tax, 20, Delhiv. Ak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIT vs. Om Overseas, 173 Taxman 185, (P & H) "In the absence of any illegality or perversity in the finding of fact arrived at by the CIT(A) sand the Tribunal that the assessee's books of account were rejected by the AO and the addition was made without pointing out any specific defect in the books of account, impugned addition was rightly deleted and no substantial question of law arises for determination." Accordingly, the addition made by the ld. AO amount to Rs.79,04,500/- is liable to be quashed. 5.2 In verification of the loan creditors the assessee has filed the document related to identity, transaction, the entire transaction was made through bank account which was produced before the bench. We set aside the order of the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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