9911796707
TMI Blog2023 (8) TMI 1338X X X X Extracts X X X X X X X X Extracts X X X X ..... an evidence to prove the wrong doing if any by the assessee. Once, the A.O. accepts the books of accounts and the entries in the books of account are matched, there is no case for making the addition as bogus sales. As in the case of Lal Chand Bhagat Ambica Ram [ 1959 (5) TMI 12 - SUPREME COURT] held that the assessee maintained the books of accounts according to the mercantile system and there was sufficient cash balance in its cash books and the books of account of the assessee were not challenged by the AO. If the entries in the books of accounts are genuine and the balance in cash is matching with the books, it can be said that the assessee has explained the nature and source of such deposit. Assessee has not obtained full addr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss Objection No. 131/Del/2022 by supporting the order of the CIT(A). 2. The Grounds of Appeal of the Revenue are as under: 1. The Ld. CIT (A) grossly erred in deleting the addition of Rs. 3,89,52,097/- under section 68 of the IT Act, 1961. 2. Whether, the Ld. CIT (A) is correct in law in deleting the additions made under the provisions of section 68 of the Income Tax Act, 1961 and treating cash deposit as sales, when assessee during the course of assessment proceedings failed to provide any justification for difference in cash sales of AY 2017-18 from AY 2016-17 and AY 2018-19. 3. Whether the Ld. CIT (A) is correct in concluding that AO did not bring any material on record against assessee in respect of cash sales which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when all other parameters like purchases, stock register, sufficiency of stock for sales made are accepted. That the entries pertaining to cash sales and corresponding bank accounts have been duly reflected in the books of accounts of the appellant. That the Books of accounts of the appellant have not been doubted by the assessing officer u/s 145(3) of Income Tax Act, 1961. That the cash receipts represent the sales which the appellant has already offered for taxation. That there is no case for making the addition u/s 68 and tax the same u/s 115BBE again. 2. That the cross objector craves the leave to add, amend, modify, delete any of the ground(s) of cross objection before or at the time of hearing. 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, the A.O. added Rs. 3,89,52,097/- as Assessee s income from undisclosed sources u/s 68 of the Act. Aggrieved by the assessment order dated 28/12/2019, the assessee preferred an Appeal before the CIT(A). The Ld. CIT(A) vide order dated 31/03/2022 allowed the Appeal of the assessee by deleting the addition made by the A.O. Aggrieved by the order of the CIT(A) the Department of Revenue filed an Appeal in ITA No. 1597/Del/2022 and by supporting the order of the CIT(A), the assessee filed C.O. No. 131/Del/2022. 5. The Ld. Departmental Representative submitted that the CIT(A) committed error in deleting the additions made u/s 68 of the Act, though the assessee failed to provide any justification for difference in cash sales for Assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... During the assessment proceedings, the A.O. did not find difference in the stock/Inventory register or the stocks maintained by the assessee, no adverse recording or findings have been made vis-a-vis any difference noticed by the A.O. in the stock, thus, in the absence of any defect or infirmity in the stock data, the A.O. has no reason to disbelieve the sales. Though, the A.O. found certain suspicions features in the books in terms of sudden spike in cash sales as compared to earlier and succeeding years, but the A.O. was not able to point out any defect in the books of account or audit financial statement of the assessee. The suspicion, however, strong it may be the same cannot be accepted as final truth without bringing on record some ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pertaining to cash sales and corresponding bank accounts have been duly reflected in the books of accounts, the stock position shown in the books of accounts have also been accepted by the A.O. and there is no allegation on the assessee of non availability of stocks or fictitious purchases and A.O. has also not rejected the Assessee s books of account u/s 145(3) of the Act, we find no ground to interfere with the observations and conclusion of the CIT(A) and find no merit in the grounds of Appeal of the Revenue, accordingly, the Grounds of Appeal of the Revenue are dismissed. 9. In the result, the Appeal filed by the Revenue in ITA No. 1597/Del/2022 is dismissed. 10. Since, we have dismissed the Appeal filed by the Revenue by upholdin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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