2015 (10) TMI 1893

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....d shown cash payments to following party viz. Sri Someswara Fertilizers & Chemicals, Somanahalli Industrial Area, Maddur for purchase of fertilizers, but on each occasion cash payment shown in the books were less than Rs. 20,000/-. The assessee was asked to produce either cash receipt of said concern for having received cash less than Rs. 20,000/- as depicted in assessee's books or to produce ledger accounts of said parties and produce ledger extract of above concern as appearing in books of assessee, which is duly certified by Sri Someshwara Fertilizers & Chemicals. In order to verify the genuineness of the ledger account produced summons was issued to Sri Someshwara Fertilizers & Chemicals on 26-07-20010 to produce their cash book and led....

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....oks on the date on which sales representatives handed over cash to them. It is also contended that the entries in their books are true and correct. The assessee produced the account copy of Sri Someshwara Fertilizers & Chemicals as appearing in the assessee's books and certified by Sri Someshwara Fertilizers & Chemicals Ltd., on 05-07-2010 which is before the date of survey on 08-10- 2010. The AO did not accept the contention of the assessee for the following reasons; - Any business man would obtain receipts for any payments in cash from the supplier as and when it is paid. - As per the books of Sri Someshwara Fertilizers & Chemicals found at the time of survey it was evident that the said company was issuing cash receipts which th....

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....day of the payments the assessee did have sufficient cash balance and this is admitted by the assessee also and the evidences clearly show that the recipient has received more than Rs. 20,000/- on each occasion and issued cash receipts as such. According to CIT(A), this has surfaced on account of survey in the case of the recipient, but for which the assessee could have sailed through with the entries. The CIT(A) further noted that the assessee produced the ledger copy of the recipient signed by them but that was before the date of survey and the assessee did not file the account copy as appearing in the recipient's books. The CIT(A) pointed out that the assessee also failed to produce the receipts issued by the recipients which were found ....