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TMI Blog2005 (11) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... e suppliers are not located and they were not produced for examination. After considering the facts of the case we are of the view that when purchases are supported with authenticated purchase bills, having sales-tax numbers and payment through cheques, the addition cannot be made u/s 69 or 69A as in this section. Thus, we are of the considered view that the addition is not warranted. We accordingly delete the addition. In the result, the appeal is partly allowed. - Member(s) : I. S. VERMA. , A. L. GEHLOT. ORDER-A.L. GEHLOT, A.M.: This appeal is filed by the assessee against the order of CIT(A)-II, Ahmedabad, dt. 17th Feb., 1999, for the asst. yr. 1995-96. 2. The first ground is pertaining to Rs. 2,49,261-unexplained cash/undisclosed inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant. I have also gone through the English version of the statement of the appellant recorded at the time of survey. It is seen that the appellant in response to question No.5 was categorical in stating that during the day, i.e., before the arrival of the survey team he had sold gold in cash of Rs. 2,18,800 and that the whole amount had been deposited in the bank. He further stated that cash balance on the day of survey was Rs. 14,362.50. It is pertinent to point out that till this stage the appellant did not mention about any further cash sales. If any other cash sales had really been made on the day of survey before the arrival of the survey team, as is now sought to be explained, it is natural that in response to question No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following submissions which were made before CIT(A): "On the other hand, the facts as pointed out by the appellant are that the aforesaid four bills bearing Nos. 522 to 525 had already been prepared before the time of survey and cash was also deposited in the bank on the same day, i.e., 19th Dec., 1994. In this connection, the learned counsel for the appellant has drawn my attention to the statement of the appellant recorded during the course of survey. English version of this statement has also been provided by the appellant. It is seen from this statement that in response to question No.4, the appellant had deposed that stock as on the date of survey was 1067.590 gms. and after deducting the sales vide bill Nos. 522 to 525, the stock was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Rs. 33,000 is sustainable, we accordingly confirm the addition of Rs. 33,000 and balance amount is deleted. The AO is directed accordingly. 7. The second ground is pertaining to Rs. 7,39,082-non-genuine expenses. 7.1. It is seen from the assessment order that appellant had shown certain purchases from Prabhu Jewellers and Parth Jewellers whose addresses have been given in the assessment order. Proprietor of Prabhu Jewellers is father of the proprietor of Parth Jewellers. As per the assessment order, the aforesaid two parties could not be located. Even the appellant was asked to produce the two parties but he was also not able to produce them before the AO. The order further states that the appellant had made purchases of Rs. 24,11,829 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot give any further particulars. In such circumstances, the appellant cannot claim his innocence. Certain facts can be inferred from the attendant circumstances. Here the circumstances are such that the story of purchases having been made from the two parties cannot be believed. It is also not necessary to prove that the amount paid by account-payee cheques had come back to the appellant. Undoubtedly, in this case purchases were made as there are corresponding sales but the purchases were made apparently from other sources and the amount for making these purchases from the attendant circumstances would have naturally come out of the account-payee cheques which are said to have been given to the two parties. This amount, therefore, really be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransferred in their accounts. It was stressed by the learned counsel for the appellant that having accepted the sales corresponding to these purchases, AO cannot treat the purchase amount for addition Or in the alternative, the AO should exclude the sales amount corresponding to the said purchases." 10. The learned Departmental Representative relied upon the orders of lower authorities. 11. We have considered the rival submissions and perused the record. The admitted facts of the case are that purchases were recorded in the regular books of account maintained. The purchases are supported by proper bills/vouchers. The assessee filed the necessary details regarding name, address, sales-tax number. The payments were made through banking channe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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