2015 (2) TMI 1312

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....d 30.03.2013. 2. The first issue in this appeal of assessee is against the order of CIT(A) confirming the action of AO in making addition of Rs. 31,86,500/- being unexplained cash credit u/s. 68 of the act. For this, assessee has raised following ground nos. 2, 3 and 4: "2. For that on the facts of the case the Ld. CIT(A) was wrong in dittoing the order of the A.O. and confirming the addition of Rs. 31,86,500/- as unexplained cash credit u/s. 68 of the I. T. Act which is completely arbitrary unjustified and illegal and should be deleted. 3.For that on the facts of the case the Ld. CIT(A) was wrong in not considering the fact that all entries in cash book & their respective ledger produced are supported by confirmation o....

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....but these are trade advance received from various farmers. As the assessee could not provide details in respect to trade creditors he made addition of unexplained cash credit in the form of bogus advance at Rs. 31,86,500/-. Aggrieved, assessee preferred appeal before CIT(A), who confirmed the addition by observing in para 7.1 as under: "7.1. On analyzing the above decisions in the context of appellants case the following conclusion is arrived. (i) As per section 68 of the I. T. Act the burden is cast on the assessee to prove the credits shown in the books of account. The creditors also include the so called Sundry Creditors. In this case by merely giving their name, without address or other details, which would have enable....

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....e creditor. According to assessee, it is carrying out its business activity for the particular item dealt in for carrying out trading activity. According to assessee, source of supplies of items, category of customers and activity of business includes partly out of potato sale and partly out of potato seeds being the amounts received as advance from customers of the potato seeds and such deposit of cash into the bank account of the assessee has been used for making advance payment to the suppliers of potato seeds various farmers from Punjab. The assessee's books of account are complete in all respect including the bills and vouchers for purchase and sales. The AO during the course of assessment proceedings could not point out any defect in ....