TaxTMI 
TaxTMI 
2021 (9) TMI 1263
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....ual who is stated to be engaged in the business of Trading in Cloth/Fabrics for Tents etc. Assessee electronically filed his return of income for A.Y. 2011-12 on 31.02.2012 declaring total income at Rs. 35,54,050/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 28.03.2014 and the total income was determined at Rs. 61,54,330/-. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who vide order dated 31.03.2016 in Appeal No.130/14-15 granted partial relief to the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal before us and has raised the following grounds of appeal: "1. Whether the Ld. CIT(A) erred in "confirming the additi....
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....the appeal." 4. Ground No.1 is with respect to the addition of Rs. 10,70,000/- being cash deposit in the saving bank account. 5. AO noted that on the basis of AIR information, it was noticed that assessee had made cash deposit aggregating to Rs. 10,70,000/- in the bank account maintained with Bank of India. Assessee was asked to explain the source of cash deposits and furnish the cash flow statement. Assessee inter alia submitted that the bank account is a joint account maintained with his wife and that the deposits in the bank account were out of cash withdrawals made earlier from the bank account. The submissions of the assessee was not found acceptable to AO. He also did not accept the explanation of the assessee that the cash depo....
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....wals made earlier being deployed by the assessee either for acquisition of some assets or have been spent, the submission of assessee explaining the source cannot be discarded and therefore no addition of the cash deposits could have been made by the AO. He therefore submitted that entire additions made by AO be deleted. 8. Learned DR on the other hand supported the order of lower authorities. 9. We have heard the rival submissions and perused the materials available on record. The issue in the present ground is with respect to the cash deposits of Rs. 10,70,000/- treated as undisclosed income. From the table of cash deposits which aggregated to Rs. 10,70,000/- of which the addition has been made by AO, it is seen that the cash deposi....
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....the AO. Thus the ground of the assessee is allowed. 10. 2nd ground is with respect to the disallowance of Rs. 1,71,220/- made under the head of purchases. 11. During the course of assessment proceedings, assessee was asked to file the details of party-wise purchases. Assessee filed the details along with the bills which are tabulated by the AO in Para 6.2 of the order. The amount aggregated to Rs. 4,80,446/-. AO noted that assessee had not submitted any bill of Rs. 1,71,220/- in respect to the purchases made from Aggarwal Canvas Company. With respect to the other purchases, AO noted that the bills / vouchers are computer generated and therefore the authenticity and genuineness of those bills was hard to establish. He accordingly concl....