TaxTMI 
TaxTMI 
TaxTMI 
2018 (3) TMI 1517
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....the case, the Ld. CIT(A) should have consider the acts that all deposits are against sales carried on day to day basis and sales are duly reflected in the sales register and the said sales to the 19 parties were accepted in assessment made u/s. 143(3) in the present year, therefore, no addition u/s. 68 should have been made by the AO and confirmed by the Ld. CIT(A) amounting to Rs. 64,05,408/- which is completely arbitrary, unjustified and illegal. 4. For that on the facts of the case, the Ld. CIT(A) was wrong in not considering the fact that the AO without issuing notice u/s 133(6) or 131 of the IT Act has wrongly added cash credit on sales u/s. 68 and confirmed by the Ld. CIT(A) amounting to Rs. 64,05,408/- which is completely arbitrary, unjustified and illegal. 5. For that on the facts of the case, the Ld. CIT(A) was wrong in dittoing the order of the AO and confirming the addition 10% out of Motor Car expenses for personal use amounting to Rs. 39,738/- on estimate basis which is completely arbitrary, unjustified and illegal. 6. For that on the facts of the case, the Ld. CIT(A) was wrong in dittoing the order of the AO and confirming the addition 10% out of telephone ex....
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.... accept the money in the small quantity before making the sale & delivery of the goods to such parties. 1.4The assessee further submitted that the amount of cash received from such parties is tallying with the sales registers maintained by it along with the quantity as per the requirement of Food and Supply Department of West Bengal. 1.5The assessee also submitted that there was no discrepancy/ mismatch in the amount of purchases, sales and closing stock. 1.6The assessee also filed the list of 19 parties from whom the cash was accepted during the year and expressed his inability to produce such parties as the transaction with them was taken place 3 years back. Moreover these are not the regular parties of the assessee. As per the assessee these parties come from far off places once or twice in the whole year. However, the AO observed that the identification of the parties has not been furnished by the assessee. 1.7The authenticity of the mailing address furnished by the assessee during the assessment proceedings was not evidenced on the basis of the bills, cash memo & challan. 1.8The sugar is freely available in the market therefore there was no reason that the parties f....
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....assessee. But the assessee failed to furnish the identification of the person along with the current mailing address of Shri Ram Sevak Mishra. Accordingly the AO treated the same as unexplained cash credit under section 68 of the Act and added to the total income of the assessee. In view of above the AO has made the addition u/s 68 of the Act for Rs. 64,05,408/- (54,14,842.00+1,00,000.00+6,40,000.00+1,00,000.00+1,50,566.00) and added to the total income of the assessee. 6. Aggrieved assessee has preferred an appeal before Ld. CIT(A) . The assessee before the ld.CIT(A) submitted that the AO during the assessment proceeding has accepted the sales to 9 parties amounting to Rs. 53,15,781/- only out of the total addition of Rs. 64,05,408/- only. Similarly the assessee has given money to Shri Ram Sevak employee of the assessee time to time. There is a debit balance in the name of such employee. Therefore there is no question of applying the provisions of section 68 of the Act to such transaction. Similarly the assessee has taken a sum of Rs. 1 lac from his individual/ personal account which was squared up during the year. Therefore there is no question for invoking the provisions of ....
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....that they sale in cash to such purchases because subsequently recovery is difficult appellant as they are from further places small parties and from villages. It is merely statement which is not supported by any evidence particularly pursing around entry of Rs. 20000/- deposited in the books on different date & at the end one of all entry single entry of odd figure was made, clearly shows that these deposits are not made as per the rate of sugar or the business transactions. In no case all the deposits will be made of Rs. 20000/- and at the last single entry would made of odd figure just to show the total in odd figure with at least to match the price of sugar and to make non-genuine transactions of cash deposit as genuine. Hence, this ground of the appellant is dismissed and the action of the AO is upheld." Aggrieved, assessee further comes up before us with an appeal against the order of Ld. CIT(A). 7. The Ld. AR before us filed a paper book running from pages 1 to 63 and submitted in many cases the address of the parties were duly given to the AO but he failed to issue any notice to them u/s 133(6) of the Act. The copies of the ledger containing the addresses are placed on pa....
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....Rs. 53,15,781/- cannot be treated as unexplained cash credit u/s 68 of the Act. Similarly we note that the assessee has advanced money to its employee Shri Ram Sevak Mishra and accordingly debit balance in the name of the employee is appearing in the books of accounts of the assessee. The provisions of section 68 of the Act are attracted to entries of cash found credited in the books of accounts. But there is no entry of cash credit found in the books of accounts of the assessee in the name of Shri Ram Sevak Mishra. Therefore to such transaction the provisions of section 68 cannot be applied. 8.2 Similarly we note that the amount received by the assessee from M/s Ganesh Traders was accepted in part to the tune of Rs. 4,37,250.00 and the balance of Rs. 1 lac was treated as unexplained cash credit under section 68 of the Act. In this regard we note that the AO erred in accepting part of the cash receipt from M/s Ganesh traders and the balance was not accepted on the ground of non-identification and mailing address of the party. In the present case we are of the view that the AO erred in accepting part of the transaction. In case the AO has doubt on the identification of the party t....
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....essee are allowed. 9. The next issue raised by the assessee in ground no. 5 & 6 is that the ld. CIT(A) erred in confirming the order of AO by sustaining the disallowance of Rs. 39,738/- and Rs. 37,454/- in respect of motor car expenses including depreciation and telephone expenses on account of personal use of the assessee. 10. The AO during the assessment proceedings held that the personal use of motor car expenses and telephone expenses cannot be ruled out in the absence of sufficient documentary evidences justifying otherwise. Accordingly the AO has taken a view that 10% of the total expenses as mentioned above are the personal expenses of assessee. Further Assessee has preferred an appeal before Ld. CIT(A), who in turn upheld the decision of Ld.AO. Being aggrieved by this order of Ld. CIT(A) assessee further comes up before. 11. The Ld. AR before us submitted that the car expenses and telephone expenses were incurred exclusively for the purpose of the business. Therefore no disallowance can be made for such expenses on ad hoc basis. On the other hand the ld. DR vehemently supported the order of the AO. 12. We have heard both the parties and perused the materials availabl....