2013 (5) TMI 356

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....o farmers outside books of accounts' and 'unexplained credits (cash credits) in books of accounts' are two different aspects and in both the cases, assessee is under obligation to explain the sources for money. 2. The CIT (A) erred in setting off 'unexplained credits (peak credits) in the books of accounts' against 'advances to farmers outside books of accounts' even through there was no explainable source for assessee." 3. Briefly the facts are, the assessee is an individual carrying on business as commission agent. Consequent upon a search and seizure operation an assessment order for the impugned assessment year was passed u/s 143(3) on 31-3-2006. The assessee challenged he assessment order in appeal before the CIT (A). 4. The C....

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....4 of the Act and has directed the Assessing Officer to allow set off of peak of cash credit against the unaccounted advances to farmers given on 31- 3-2003. The CIT (A) following the order passed by the first appellate authority in the case of the assessee's wife held that the assessee is entitled to set off of the peak of cash credits of Rs.31,41,600 from the unaccounted advances of Rs.49,45,000/- given to the farmers and directed the Assessing Officer to bring to tax the balance amount of Rs.18,03,400/- 6. Being aggrieved of the aforesaid order of the CIT (A), the department is in appeal before us. 7. We have heard submissions of the parties and perused the material on record. Undisputedly similar dispute regarding set off of peak o....