2016 (10) TMI 1060

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.... of income showing total income of Rs. 5,01,099/- against gross receipt of Rs. 39,50,000/- in contract work. The Assessing Officer noted that the total of the credit side in the assessee's bank account was of Rs. 1,94,18,100/-. The Assessing Officer was of the opinion that this represented the assessee's gross turnover of business and it should have maintained regular books of account and got them audited. He required the assessee to explain the source of the cash deposit. The assessee explained that the cash deposits were made out of the various cash withdrawals which were made from time to time, as available with the assessee in the form of cash in hand. Rejecting this explanation of the assessee, the Assessing Officer treated the entire ....

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....g about cash withdrawn from the bank going elsewhere or for any other reason, the cash available on a particular date being less than the cash deposited in the account on that day, he will be entitled to hold such deposit as unexplained and addition to that extent will be sustained. 1.5 With this end in view, the assessee is directed to produce its cash statement and explain the availability of cash as the source of the deposit in question. The A.O. is entitled to cause such inquiry as he thinks fit to verify the correctness of the same. He would be entitled to hold a cash deposit or part thereof as unexplained if he is able to establish that: i) The cash shown as received by the assessee had no explained source, or ii) The cash wi....

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....as deleted the addition made by the Assessing Officer; that the Ld. CIT (A) has, in fact, enabled the Assessing Officer to make such inquiry as he deems fit to verify the cash statement to be produced by the assessee; and that as such, there being no merit therein, the appeal filed by the Department be dismissed. 7. We have heard the parties and have perused the material on record. We find that indeed, the Ld. CIT (A) has deleted the addition made by the Assessing Officer and it is not a case of setting aside the assessment and remitting the matter to the Assessing Officer. It is seen that the directions given by the Ld. CIT (A) were not required to be given and the same are liable to be expunged. 8. In view of the above, the directio....

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.... and the Hon'ble High Court of Uttarakhand, as aforesaid. For the sake of clarity, we are reproducing the provisions of section 251(1)(a) as under:- Powers of the Commissioner of (Appeals) "251. (1) In disposing of an appeal, the Commissioner (Appeals) shall have the following powers - (a) In an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment." 8. A perusal of CIT(A)'s order reveals that on one hand the ld. CIT(A) has held that by furnishing statements of affairs, the assessee had been able to explain the accretion to its capital account and assets with reference to the income shown by it in the return of income and therefore the AO's allegation of unexplained cash deposit was....