9911796707
TMI Blog2024 (4) TMI 1235X X X X Extracts X X X X X X X X Extracts X X X X ..... DCIT, Non Corporate Circle-2, Coimbatore has filed a petition in the form of an affidavit for condonation of the delay explaining the cause for the delay in filing the appeal and prayed that the delay may be condoned and admitted the appeal for hearing. Against the submissions made in the affidavit by the Revenue, the ld. counsel for the assessee has not raised any serious objection. Consequently, since the Revenue was prevented by sufficient cause, the delay of 32 days in filing of the appeal stands condoned and admitted the appeal for adjudication. 3. Brief facts of the case are that the assessee has filed its return of income for the assessment year 2017-18 on 07.11.2017 declaring total income of Rs.3,24,82,320/-. The return filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... address, PAN or identity of the buyers was furnished by the assessee in support of its claim. After analysing the turnover details, details of cash sales and cash deposits from 01.04.2016 to 08.11.2016 as well as for the period from 01.04.2015 to 08.11.2015, the Assessing Officer has observed that nowhere in the comparable months of the earlier assessment year, for that matter, in any of the current assessment year also, the assessee has achieved such sales. The assessee has not furnished any justification or reasoning for the substantial increase in cash sales in October and also between 01.11.2016 and 08.11.2016. Thus, the Assessing Officer was of the opinion that the assessee has intended to accommodate the SBN deposits aggregating to Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,358/- during the 8 days period from 01.11.2016 to 08.11.2016 alone, when the assessee's total sale for any of the previous months or for the previous year is substantially low. 4. Whether on the facts and the circumstances of the case and in law, the Ld. CIT (A) was right in stating that the AO has not doubted the purchases made by assessee, when the fact is that the assessee has not submitted Purchase Ledger for verification, event though it was called for during the course of assessment proceedings. 5. Whether on the facts and the circumstances of the case and in law, the Ld. CIT (A) was right in not considering the fact that the assessee failed to submit the Sales Leger for the FY 2015-16 and FY 2016-17, even though it was called ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. counsel has strongly supported the order passed by the ld. CIT(A). 7. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below including paper book filed by the assessee. In this case, it is an admitted fact that in response to the notice under section 142(1) of the Act along with questionnaire dated 30.10.2019 requiring the assessee to furnish brief write up of the case, complete financial statements along with details/proof, supporting materials and details & clarification, the assessee has uploaded all the financials for the financial year 2016-17 and other details called for along with its supporting materials through online. The assessee also furnished bank statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fault in the books as there was no mistake. However, once the audited books are accepted by the Assessing Officer, the book results have to be accepted. The Assessing Officer cannot disallow cash sales while at the same time accepting the purchases and the monthly stock. Purchases, sales and the stock are interlinked and inseparable. Every purchase increases the stock and every sale decreases the stock. To disbelieve the sales either the assessee should not have the sufficient stocks in their possession or there must be defects in the stock registers/stocks. Once there is no defect in the purchases and sales and the same are matching with inflow and the outflow of stock, there is no reason to disbelieve the sales. The Assessing Officer acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eller is not required to obtain PAN from purchaser till this limit. The assessee has not made any sales above Rs.2 Lakhs hence merely on suspicion it cannot be inferred that the sale is bogus. Hence rejecting the cash sales bills on this count cannot be done. It is a true fact that the books of the assessee have been audited and no fault has been found. 10. With regard to the contention of the ld. DR is that the assessee has not submitted purchase ledger, sales ledger, cash book for the year under consideration and for the previous year, even though called for during scrutiny proceedings. The above submissions are not found to be correct for the reason that in response to the notice issued under section 142(1) of the Act dated 30.10.2019, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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