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2023 (3) TMI 278
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....ssessee has raised the following grounds of appeal: "1. That the Revenue wrongly ignored before 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, t....
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....rther there was no bar to deposit old notes in the bank up to 31- 12-2016 and addition on hypothesis of 'demonetization period' 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 add....
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....iled a brief written note in support of its grounds of appeal which reads as under: 1) the assessee filed books of account, Stock Register 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 assesse....
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....rejecting the books of accounts and partly accepted the books of accounts, which is bad-in-law. As in Para 3.8 of the order A.O says he rejected the books of accounts, then he can't rely on the books 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 busin....
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.... very lengthy running into 53 pages)" 6. The Ld. DR stands by the impugned order. However, he has not controverted the fact of cash sales and that of no discrepancy being pointed out by the revenue authorities in the books of account, sales, purchases and stock maintained by the appellant. 7. Heard the rival 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 a....
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....on same books of accounts which have been accepted. 9. It is settled law that the A.O cannot sit on the chair of the assessee to decide the sales, as per his choice to categorize into so called bogus sales and non-bogus sale. In the case of 'S. A. builders Ltd. Vs. CIT(A)', (Supra) It is held that: "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 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 ju....