TaxTMI 
TaxTMI 
2023 (3) TMI 278
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....fore making addition that there is no discrepancy in the statutory records, as maintained by appellant for salestax department and audited books of accounts like; (a) VAT-15(quarterly) (b) VAT-20(Audited-Annual Report) (c) cash- book (d) Ledger (e) Stock Register (inflow and outflow of stock) (f) Purchase Register (g)Sale Register (h) Sundry Creditors (i) Sundry Debtors And further suo-motto derived the figure of Rs. 1,35,43,034/- out of total cash sales, as recorded in cash-book vs. sale bills vs. stock register, by comparison with receding previous year's total cash sales on surmises and conjectures/without tangible evidence, treated as unexplained income, and further ignored every year is an independent year and with increase in sa....
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.... is bad-in-law." 3. At the outset, the Ld. Counsel submitted that during the course of scrutiny proceedings, the assesse explained before the AO that the cash deposits of Rs. 1,35,43,034/- made in its bank account pertains to cash sales made during the demonetization period. However, the AO was being not satisfied with the explanation of the assessee in respect of cash deposits of Rs. 1,35,43,034/- made in bank account during the demonetization period and alleged it to be an abnormal increase in cash sales which was not in trend with the immediately previous assessment year sales, and accordingly made addition to return income of the assessee. 4. The ld. CIT(A) has not appreciated the facts of the case and confirmed the order of the AO in....
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....and all other record as mentioned in ground of appeal for verification to A.O and CIT(A) but no defect was ever pointed out by revenue and the said record is enclosed again for Hon'ble Bench's kind perusal, as per detail given in Paper book U/R 18 of Income Tax (Appellate Tribunal) Rules, 1963 at page 10 to 11. Proof of submissions of all documents along with synopsis to CIT(A) is also enclosed at page 365 to 375. 2) Revenue accepted the opening stock, closing stock, purchases, direct expenses, sundry debtors, sundry creditors, all VAT 15 returns and annual VAT 20 of the assessee and has not pinpointed any defect in any of the above said documents. 3) That Ld. A.O can't brush aside suo-motto statutory record of Sales-tax dep....
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....of accounts like opening stock, closing stock, purchases, sundry debtors, sundry creditors, GP Ratio and expenses etc. etc., which are based on books of accounts only have been accepted. CASE LAWS relied A. A.O has tried to sit on the chair of the assessee and tried to divide the sales, as per his choice into so called bogus sales and non-bogus sale: S. A. builders Ltd. Vs. CIT(A) - (2007) 288 ITR 1 (SC) Copy enclosed at page 378 to 385 Held: it is for the assessee to take care his business exigency and assessee is on his free will to do business, as per his wisdom and his arm cannot be twisted to do the business, as per the choice of anybody else. In our case A.O tried to twist the arm of the assessee by twisting his sales and ....
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....al contentions and perused the material on record and case law cited before us. Admittedly, it is an undisputed fact that authorities below had accepted the opening stock, closing stock, purchases, direct expenses, sundry debtors, sundry creditors, all VAT 15 returns and annual VAT 20 of the assessee and did not point out any defect in any of the aforesaid documentary evidences. The Ld. AR submitted that the assessee filed books of account, Stock Register and all other record for verification before the A.O and CIT(A) but they didn't point out any defect in the said record (APB, Pg.365 to 375). In our view, the AO can't brush aside suomotto statutory record of Sales-tax department like Vat-15 and vat-20 without pin pointing any defect i....
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....ee to take care his business exigency and assessee is on his free will to do business, as per his wisdom and his arm cannot be twisted to do the business, as per the choice of anybody else. In our case A.O tried to twist the arm of the assessee by twisting his sales and forgot that whatever he has done, he has done as per his business exigency and wisdom at any given time and no hypothesis can be applied by A.O just sitting on his chair". 10. The Visakhapatanam Tribunal in the case of ACIT Vs. Hirepanna Jewellers has observed that when no difference in stock register found, purchases, sales and the stock are inter linked and are inseparable. Every purchase increases the stock and every sale decreases the stock and all matching with inflow ....