2015 (10) TMI 1895

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....rn of income for A.Y. 2009-2010 on 17.12.2009 declaring total income of Rs. 1,59,041/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) r.w.s. 144 vide order dated 30.12.2011 and the total income was determined at Rs. 38,35,040/-. Aggrieved by the order of A.O., Assessee carried the matter before ld. CIT(A) who vide order dated 12.07.2012 granted substantial relief to the Assessee. Aggrieved by the aforesaid order of ld. CIT(A), Revenue is now in appeal before us and has raised the following effective ground:- 1. The ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 36,60,000/- on account of unexplained cash deposits in the bank account which is more than the gross r....

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....08,500/-. It is an established practice in the marker that sale proceeds in retail business are generally received in cash This way, appellant's explanation that cash sale proceeds of Rs. 33,08,500/- was deposited with bank is plausible and I am inclined to agree with this contention of the appellant. Perusal of S. B. account of the appellant with IDBI Bank further reveals that appellant has issued cheques against cash deposits from this account. These cheques are prima-facily issued to the suppliers. In this regard appellant submitted that cash deposits made in bank were out of cash sale proceeds, since suppliers were insisting payments by cheque. There is nothing on record to indicate that the appellant has made saving out of these ca....

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....ipts earned through transport business. From the side of the assessee a decision of the ITAT, Ahmedabad Bench pronounced in the case of Shivani Builders v/s. ITO 295 IR (AT) 281 (Ahmedabad) has also been cited for the proposition that if the assessee is showing higher income than the presumptive income, then there is no question of further addition and the income so declared deserves to be accepted. Thus, totality of the circumstances warrants to accept the view taken by the learned CIT(A). The Revenue's ground is accordingly dismissed." 4.3In view of the above facts, I am inclined to agree with the contentions of the Id. A.R. Accordingly, I hold that appellant has explained source of cash deposits to the extent of Rs. 33,08,500/- an....

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.... appeal is allowed. 5. Aggrieved by the aforesaid order of ld. CIT(A), Revenue is now in appeal before us. 6. Before us, ld. D.R. supported the order of A.O. On the other hand ld. A.R. reiterated the submission made before A.O and ld. CIT(A) and supported the order of ld. CIT(A). 7. We have heard the rival submissions and perused the material on record. We find that ld. CIT(A) while deleting the addition to the extent of deposits from business aggregate to Rs. 33,08,500/- has noted that considering the nature of business of Assessee, the receipts of sale proceeds by assessee in cash and the same being deposited in the bank account to be a plausible explanation. Ld. CIT(A) has also noted that Assessee had issued cheques against the ....