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TMI Blog2023 (11) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... eting the addition of Rs. 1,52,58,698/- on account of unexplained cash deposit without appreciating the facts that no return of income was filed by the assessee as required u/s 139 of the Act or even after receipt of notice u/s 148 of the Act, did not respond at all to the opportunities provided by the AO by issuing of notice/letters on 26.05.2016, 10.06.2016, 11.07.2016 & 19.07.2016. The assessee had failed to discharge the burden of proof to justify the transaction. 2. The Ld. CIT(A) erred in deleting the addition of Rs. 2,30,97,280/- on the basis of Form 26AS without verifying the inflated purchase claimed by the assessee as evident from records. 3. That on the facts and in the circumstances of the case and in law the Ld. CIT(A) has erred in deleting the addition of Rs. 10 Lakhs on account of estimated income for non-filing of return on a wrong appreciation of fact and law by accepting additional evidences such as tax audit report produced for the first time during the course of appellate proceeding and return of income filed after the passing the assessment order. 3. Facts in brief are that in the instant assessment year the assessee has not filed any return of income ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt the remand report, reply by the assessee to the remand report, deleted all the additions by observing and holding as under: "I have carefully considered the, finding of the Ld. AO, submission of the appellant, remand report of the AO and appellant's joinder to remand report. The undisputed fact is that the appellant is engaged in the business of crushing of iron ore Lumps as well as trading of crushed iron ore Lumps. As the appellant has not filed the return of income, for A.Y.2013-14 and moreover, the AO has some information regarding huge cash deposits in the bank, issued notice, u/s. 148 of the Act. During the assessment proceeding, the AO on perusal of bank statement noted that the appellant deposited cash aggregating to Rs. 1,52,58,698/-. Accordingly, the AO show-caused the appellant to prove the source of cash deposits / cash credits into the bank account. As the assessee failed to submit any explanation / details, the AO treated the same as unexplained cash credit u/s.68 and made an addition of Rs. 1,52,58,698/-. Further, the AO on perusal of Form 26AS noted that the assessee was in receipt of a total amount of Rs. 2,30,97,280/-' on which TDS u/s,194A or 194J was de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t are contrary to the facts on record.On a careful consideration I find considerable force in the submission of the appellant. It is a fact that the appellant is dealing in manufacture and trading of iron ore lumps and accordingly made total sales of Rs. 11,09,47,812/- of which cash sales comprised only Rs 1,74,98,682/-. Out of the said cash sales the appellant deposited Rs. 1,52,58,698/- into the bank. Further, it is not the case of the AO that the cash deposited was from some other source, other than the sale proceeds of iron ore lumps more so when the AO has not doubted the audited books of accounts in. the remand proceeding. In fact the AO in the remand proceeding miserably failed to scrutinize the documents which were already on record leave alone any worthwhile investigation in spite being empowered to do so u/s.250(4) of the Act. Therefore, I hold that the cash deposits made arc from the cash sale proceeds of iron ore lumps and accordingly, the AO is directed to delete the addition made of Rs. 1,52,58,698/-. With regard to addition made of Rs. 2,30,97,280/- based on Form 26AS, it is a fact that it contained both TDS and TCS, whereas the AO totally misunderstood the content o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the company was stopped and the office at Ranchi was also sealed by the Bank. Accordingly no notices were received by the assessee however on receipt of information regarding proceedings u/s 148 of the Act the assessee filed return of income on 23.09.2016 at NIL. We note that the assessee has maintained books of accounts accounting for all the business transactions including cash deposits, interest from bank and purchase of Iron oresetc which were duly audited by the Chartered Accountant/ auditor of the company. We note that in the assessment proceedings, the AO estimated the income of the assessee at Rs. 10,00,000/- from business besides making addition of Rs. 1,52,58,698/- in respect of cash deposits in the bank and also Rs. 2,30,97,280/- as appearing in Form 26AS in respect of purchases made by the assessee on which TCS was deducted by the suppliers of iron lumps. We note that the Ld. CIT(A) called for the remand report on the submissions made by the assessee and after receipt of remand report, the assessee was confronted with the same and the assessee has also filed reply to the said remand report. In the remand report we note that the AO has reiterated his earlier positi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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