TaxTMI 
TaxTMI 
2020 (6) TMI 45
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.... filed for the above two assessment years. As per the information available with the Ld. A.O showing that there were huge cash deposit in the bank account held by the assessee, the cases were reopened u/s 147 of the Act by issuing notice u/s 148 of the Act. In reply there to return of income for Assessment Year 2007-08 was filed on 17.1.13 declaring loss of Rs. 2,64,576/- and Return of income for A.Y 2008-09 showing income at Rs. NIL was filed on 29.8.2013. 4. During the course of assessment proceedings for Assessment Year 2007-08, Ld. A.O noticed that assessee had taken unsecured loans amounting to Rs. 6,19,49,750/- from 192 persons. He asked the assessee to prove the identity, genuineness and creditworthiness of cash creditors. Assessee could only file the confirmation but was unable to produce the cash creditors. In view of the Ld. A.O assessee failed to prove the genuineness of the transaction and creditworthiness of the parties and therefore he made the addition u/s 68 of the Act at Rs. 6,19,49,750/-. For Assessment Year 2007-08 Ld. A.O also observed that there were cash deposits of Rs. 3,21,81,267/-. Assessee has claimed to have received cash from various parties against t....
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.... 4. The Ld AO has erred in making additions of Rs. 27,00,000/- for refund of advances made earlier by the AO and Ld CIT (A) has erred in confirming the same without appreciating the facts of the case that Advances were appearing in the Balance sheet of earlier years and the same is on record. 5. The Ld AO has further erred and Ld CIT (A) has also erred in confirming the additions of amount received from sundry debtors which is appearing in the balance sheet of earlier year and the same is on record. 6. Your appellant craves, leave to add, amend, modify or withdraw any of the grounds of appeal on or before or during the course of hearing. ITA No.776/Ind/2016 Assessment Year 2008-09 'l. The Ld. AO has erred in making additions and Ld CITCA) has erred in confirming the addition without appreciating the facts of the case that cash deposits is out of regular books of accounts maintained by the appellant and out of funds contributed with the Firm M/s. Roshanlal Deshraj & Party. 2. The Ld. AO has erred in not considering the copy of A/c of the firm M/s. Roshanlal Deshraj & Party filed during the course of assessment proceedings and cash d....
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.... asked the assessee to file the confirmations of all the parties along with the bank statement. Accordingly the assessee filed all the confirmations showing the permanent account number of various creditors. In majority of the cases the bank statement were also filed. During the last hearing the Ld. A.O asked the assessee to produce 75 creditors within a week's time. Numbers of creditors were taken to the Income Tax Office but the statement of only 17 persons could be recorded. All of them confirmed the transaction with the assessee. Copies of their Bank accounts and Income Tax Returns were filed. It was submitted before the Ld. AO that these loans were genuine. The necessary confirmations from all the parties were obtained and were placed on records. During the course of the assessment proceedings some of the creditors appeared before the Ld. AO and confirmed the loans being advanced to the assessee. The copies of the statements and their bank account with Income Tax Returns are attached in PB from page 193 to 311. It was submitted that all the credits were received through the banking channel and the repayments of these loans were also made through banking c....
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....ssed to tax having PAN. All the creditors are from the same area and the Ld. A.O could have ascertain the fact of advancing the money from their respective Income Tax Returns. Without doing so he has merely added the amount as the income of the assessee on pure surmises and conjuctures iwith the wrong observation that all the creditors were not produced for examination. The said approach is unjudicious. The assessee has filed all the confirmations with their PAN and in majority of cases the bank statements have been filled. All the payments have been received through banking channel and the repayments have also been made through banking channel. Under these circumstances the transaction cannot be treated as ungenuine. For the purpose of business and Short advances the assessee has withdrawn the cash from the bank. Thus the cash was available for depositing the same in the bank. No cognizance has been given for the cash book produced before the Ld. A.O and the Ld. CIT(A). Under these circumstances the additions made deserves to be deleted. In this connection we would like to draw your honour's kind attention to the following cases. 1. CIT V/s. Metachem - 245 ITR p.160 (....
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....over looked by both lower authorities. He also contended that double addition have been made. When the Ld. Counsel for the assessee was asked whether the assessee is prepared to go before Ld. A.O once again with necessary details to substantiate to its grounds and to content that the additions were wrongly made then the Ld. Counsel for the assessee raised no objection. 10. Per contra Ld. Departmental Representative vehemently argued supporting orders of both the lower authorities but had no objection if the issues raised in both the appeals are restored to the file of Ld. A.O for afresh adjudication. 11. We have heard rival contentions and perused the records placed before us. The assessee has raised various grounds of appeal for Assessment Year 2007-08 and 2008-09 which majorly challenges addition for unexplained cash credits and unexplained cash deposits. On perusal of records including assessment order, order of Ld. CIT(A), submissions made by the assessee at various stages shows that the assessee is in the business of trading of poppy straw. In order to apply for tender for "poppy straw" in the State Excise Department he needed the funds during the Financial Year 2006-07 ....