TaxTMI 
TaxTMI 
2010 (9) TMI 154
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....ome Tax Appellate Tribunal (for brevity "Tribunal") in ITA No. 3184/Del/2008 for the Assessment Year 1996-97. 2. The relevant facts of the present appeal are that appellant-assessee filed a return declaring its income as nil. However, during the course of assessment proceedings under Section 143(3) of Act, 1961 appellant's net taxable income was determined at ' 5,84,992/-. The following three additions were made in the appellant's income :- i) Income from unexplained sources 2,08,800/- ii) Unexplained customer advances U/s 68 1,98,000/- iii) On account of cash received U/s. 68 1,50,000/- 5,56,800/- 3. Upon an appeal being filed by the appellant, the Commissioner of Income Tax (Appeals) [in short "CIT(....
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.... fact and the Tribunal has given cogent reasons for arriving at its conclusion. The relevant portion of the impugned order is reproduced hereinbelow:- "16. It is not in dispute that all the money by way of advances has been credited by the assessee in cash in the books of account. The transaction of receipt of money is not made through banking channel. The assessee has not produced any iota of evidences as to the identity and existence of the aforesaid parties except producing certain invoices allegedly issued by them. The assessee has not produced any sort of evidences that these parties were carrying on a business at the address as given neither any details as to the premises occupying by them has been produced. The assessee has also n....
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.... company, incorporated under the Companies Act, in the month of March, 1996. It is not the case where businessman has given the advances to a small cultivator of village to produce his products to be produced from his agricultural land. But it is the case where fruit and vegetable commission agent i.e. the businessmen, are making advances to the present assessee, who is a company having the balance of Rs.11,08,746/- in its bank account as end of the year ended on 30.01.1996 and has also advanced loans and advances of Rs.5,87,693/- to other persons. The assessee has also shown sundry creditors of Rs.5,40,769/- though the total sale of agricultural products to the assessee is only Rs.2,36,992/- in the year ended on 30.01.1996. The assessee is....
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....ness transaction in this line of business. We are, thus, not convinced that the transactions of receiving the amount in cash from the intending purchasers of vegetables is above board. We also fail to understand under what circumstances and for what benefit the alleged fruit and vegetable commission agent would block substantial amount for four to eight months for getting supply of vegetables, which are otherwise easily available in the market. The assessee's contention that the A.O. has not made an enquiry in the course of fresh assessment proceedings is also not tenable inasmuch as the A.O. had given ample and sufficient opportunities to the assessee to produce evidences in support of the advances as well as the concerned persons, who had....