TaxTMI 
TaxTMI 
2021 (6) TMI 849
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....e Tax Act, 1961 (the Act) concerning AY 2015-16. 2. The grounds of appeal raised by assessee read as under: "Addition on account of unexplained cash deposited in the bank account of Rs. 27,20,249/- The Hon'ble CIT (Appeals)-2, Ahmedabad has erred in law and on facts by confirming the addition of Rs. 27,20,249/- made by Ld. Assessing Officer for the sale of agriculture produce being sold to Dariyalal Aloo Bhandar to whom the assessee sold the agriculture produce and the bill for the same was produced to the Ld. CIT(A). However, The notice sent to the said party has been returned unserved with the remark "Shop Closed". The method of purchasing and sale of agriculture produce like potato comes to the farm and ....
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....nexplained income of the assessee. In the appeal proceedings, the CIT(A) remanded the matter for verification to the AO and AO issued notices to both parties above u/s. 133(6) of the Act. Out of the above amounts, the CIT(A) eventually accepted the amount of Rs. 25,21,693/- as explained Income on the basis of the reply received from Noor Traders about the transactions. However, another notice u/s. 133(6) of the Act issued to Dariyalal Aloo Bhandar was returned undelivered due to closure of shop. Consequently, while the CIT(A) allowed the source of cash received from Noor Traders towards sale of potato amounting to Rs. 25,21,693/- as explained, the addition towards other amount of Rs. 27,20,249/- was confirmed owing to non-confirmation from ....
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....irm at the time when the assessee have sold the Potato and have received the Money, thereafter the owner of said firm have closed his shop due to losses to him and is absconding since then. In fact the Survey u/s. 133(6) is conducted by a notice which is issued after several years after the date of transactions made, which is received back unserved due to "SHOP CLOSE", thereafter, AO did not bothered for verifying the fact by physical visit of the place and to inquire about the fact, whereas he have made mere assumption that the party never exist and have treated the amount of sale to such party as unexplained. (iv) The Dariyalal Aloo Bhandar has closed the business since 2016 in confirmation of this fact the assessee submits the a....
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....losed down and absconded from market. The AO could have initiated the inquiry on return of such notice which he has failed. 6. Simultaneously, we notice that the Revenue has relied upon the order of the AO and pointed out that assessee has failed to prove the source of the cash deposits and explanation offered towards cash deposit does not pass the test of human probabilities and surrounding circumstances. 7. On weighing the rival contentions, we find considerable merits in the plea raised on behalf of the assessee. It is noticed that assessee is having sufficient land alongwith other family members to support the case of cultivation of potato sold. The CIT(A) has accepted the fact of production of potato and has taken the receipt of ....