2012 (6) TMI 800

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.... against the order of ld. CIT(Appeals) deleting the addition made by the Assessing Officer under sect ion 68 of the Act at Rs. 78,77,281/ -. For this, Revenue has raised the following two grounds: - (1) That the ld. CIT(A)-VI, Kolkata has erred in law as well as on facts of the case in deleting the addition of Rs. 78,77,281/ - made u/s. 68 of the I.T. Act whereas i t is clear from the facts and circumstances and the existing legal position that the assessee failed to explain beyond reasonable doubt the nature of cash credit in its account. (2) That the ld. CIT(A)-VI, Kolkata has erred in law as well as on facts in failing to give opportunity to the A.O. to verify the additional documents/ evidence (photocopies of newspaper advertiseme....

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....ng the purchases. The appellant also submitted that cash was collected from the parties interested in purchasing the materials. The ld. AR argued that the purchasers were all unorganised market operators and the appellant did not have any contacts with them to prove their geniuses. The ld. A.R. argued that the amounts collected on sale were advance amounts collected and the delivery of the material was given in the month of March only and that too after the challans were made by the official liquidator. This can be supported from the confirmations given by the purchasers and also the bill/challan/invoice raised by the official liquidator. The details of the materials and the vehicle number written on the bills of the official liquidator cle....

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.... made as per the order of Hon'ble Jharkhand High Court vide Order No. 32 dated 03.12.2004, which was made on 09.12.2004 by way of Demand Draft drawn in favour of Official Liquidator amounting to Rs. 85,05,500/ -. We find that the assessee has made purchases from Official Liquidator under the order of Hon'ble Jharkhand High Court and the payment was made by Demand Draft confirming the purchases. Once it is a fact that the purchases are made, the assessee has produced complete books of accounts including sales bills, purchase bills and vouchers of expenditure. The Assessing Officer could not find out any fault in the books of accounts and without finding any fault in the books of accounts, he made the addition of sales. Whether the Assessi....