TaxTMI 
TaxTMI 
TaxTMI 
2021 (1) TMI 873
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....ses and the other addition of Rs. 40,20,000/- towards cash deposit, Revenue preferred this appeal. 2. Brief facts of the case are that the assessee has been in the business of gift items and furniture. For the assessment year 2012-13 he filed the return of income on 7/9/2012 declaring an income of Rs. 6,70,500/-. Assessment order under section 143(3) of the Income Tax Act, 1961 (for short "the Act") was passed on 80 5/3/2015 at Rs. 1,87,29,250/-while making certain additions, which includes the additions disputed in this matter. When the assessee preferred appeal, Ld. CIT(A), by way of impugned order deleted the additions relevant for this appeal while granting partial relief to the assessee. 3. Aggrieved by such additions, assessee prefe....
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....Ld. CIT(A) failed to appreciate the facts brought on record by the learned Assessing Officer and also failed to see that there is sufficient evidence supporting these two additions. Ld. DR placed reliance on the assessment order and contended that the deletion of these additions by the Ld. CIT(A) is not justified. 7. Per contra, Ld. AR submitted that during the first appellate proceedings, the assessee produced the voluminous evidence before the Ld. CIT(A) in support of the contentions basing on which the Ld. CIT(A) sought for the remand report from the learned Assessing Officer, and the learned Assessing Officer did not give any adverse remarks in respect of these additions or the evidence filed in support of the contentions of the assess....
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....g Officer though in enclosed the letter dated 9/4/2015 of the Assistant Commissioner of Trade Tax with reference to the address of the assessee, nothing material could be turned out on that aspect. It's also not in dispute that the learned Assessing Officer had examined the books of accounts and documents, as is evident from the assessment order, but it did not a detail out any discrepancy therein. At the same time the learned Assessing Officer neither rejected the books of accounts nor invoked the provisions of section 145 of the Act before disturbing the trading results. The submission of the assessee that the learned Assessing Officer did not bring any documentary evidence on record to show that the assessee did not purchase any goods as....
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.... 1,06,92,040/-, the difference of amount to the tune of Rs. 1,38,17,203/-, is liable to be deleted. 12. The assessment order does not reveal that the learned Assessing Officer rejected the books of accounts or suspected the sales, and such sales include the sales in respect of the alleged bogus purchases. If we go by the suspicion of the learned Assessing Officer, it creates a situation in which the admitted sales would give rise to the GP rate at 56.60% on the sales of Rs. 2,84,21,433/-, because the alleged bogus purchases amount of Rs. 1,38,17,203/- is added back to the declared GP of Rs. 22,68,156/-. It is not the case of the learned Assessing Officer that in the given business of the assessee the prevailing GP rate is at any rate, near....
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....king a comprehensive review, we are of the considered opinion that the view taken by the learned Assessing Officer does not appear to be sound and the Ld. CIT(A) deleted the addition by taking a pragmatic view. We, therefore, do not think it necessary to interfere with the same. 14. Now coming to the addition of Rs. 40,20,000/- on account of the unexplained deposits in the savings bank account of the assessee, there is no dispute that the assessee has been maintaining the books of accounts regularly and properly recording the transactions, and even an examination of the same. Learned Assessing Officer did not point out any defect in such books of accounts. Ld. CIT(A) recorded that the learned Assessing Officer did not offer any adverse com....