TaxTMI 
TaxTMI 
2024 (3) TMI 426
X X X X Extracts X X X X
X X X X Extracts X X X X
....this common order. 2. The common issue relates to addition of Rs. 11,45,348/- and Rs. 10,88,000/- under section 69A of the Income Tax Act, 1961 (the "Act") made by the Ld. Assessing Officer ("AO") in AY 2016-17 and 2017-18 respectively which has been sustained by the Ld. CIT(A). 3. Briefly stated, the facts are that the assessee is an individual. He is proprietor of M/s. S.K. Impex engaged in the business of gold/bullion trading. For AY 2016-17 he filed his return on 07.12.2016 declaring income of Rs. 1,56,23,790/- which was accepted vide order of assessment dated 21.12.2019 passed under section 153C r.w.section 143(3) of the Act. Likewise, for AY 2017-18 he filed his return on 25.10.2017 declaring income of Rs. 3,84,76,300/- which was ac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....("FY") 2015-16 relevant to AY 2016-17. Likewise, M/s. JBL had received from the assessee cash of Rs. 10,88,000/- on 22.06.2016 i.e. in FY 2016-17 relevant to AY 2017-18. The Ld. AO required the assessee to prove the genuineness of the above cash transactions vide show cause notice dated 09.12.2021 to which the assessee replied via e-mail on 13.12.2021 stating therein inter alia that the assessee had entered into transactions with M/s. JBL with Rs. 38,31,71,220/- during the FY 2015-16 and with Rs. 18,85,67,331/- during the FY 2016-17 on various dates through bank account and submitted invoices of the same. A common reply for both the years was given regarding the above cash transactions which is as under:- "Cash Transactions: With regard t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssment on total income of Rs. 1,67,69,140/- and Rs. 3,95,64,300/- for AY 2016-17 and AY 2017-18 on 28.12.2021 and 30.12.2021 respectively under section 153C r.w. section 143(3) of the Act. 5. Aggrieved, the assessee carried the matter in appeal before the Ld. CIT(A) in both the AY(s). The Ld. CIT(A) summarised the submission of the assessee in para 6.1 to 6.4 of his appellate orders. He recorded his observation and findings in para 6.5 of his appellate orders separately based on facts emerging from the details submitted and findings made by the Ld. AO as under:- "6.5 I have considered the facts and submission of the assessee. The following facts emerges from the details submitted and findings made by the AO: a) There was a search on M/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ates as per the Hajir Johri ledger cannot be said to be false. g) The appellant has been kept denying the above fact without providing plausible reason since it cannot be true that the information provided in a same ledger would be partly correct and partly incorrect. h) The Hajir Johri ledger mentions even the corresponding transactions with respect to the cash received from the appellant including sale of gold/bullions. Hence, on going through the Hajir Johri ledger it cannot be said that the transactions appearing therein are not genuine. In view of the above, it has been observed that since the appellant has failed to explain the source of such cash payments/receipts, it is held that the net amount of Rs. 11,45,348/- paid by the a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the assessment order(s) only. Had the assessee been confronted with the statement of Ms. Parul Ahluwalia, he would have requested for her cross-examination. Due to lack of such an opportunity, the statement of Ms. Parul Ahluwalia cannot be used adversely against the assessee. He relied on the decisions of Hon'ble Supreme Court in Andman Timber Industries vs. CCE, Kolkata-2, Civil Appeal No. 4228/2006 (SC) and Hon'ble Delhi High Court in CIT vs. Harjeev Aggarwal (2016) 70, taxmann.com 95 (Del). 7.2 The Ld. AR further submitted that the impugned addition under section 69C as done by the Ld. AO cannot be sustained. Moreover, the confirmation of impugned addition under section 69A for AY 2017-18 by the Ld. CIT(A) is also not maintainable. As p....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to the assessee. No specific questions in this regard were asked from her. Nothing is forthcoming from the side of the Revenue to controvert the above pleadings of the assessee. 9.1 It was asserted by the assessee before the Ld. AO that the assessee was not even cross examined during search operation of M/s. JBL or during post search enquiry/investigation either by the Intelligence Wing or by the Ld. AO. The Revenue is silent on this aspect of the assessee's assertion. 9.2 It is observed that during the course of assessment proceedings the show cause notice dated 09.12.2021 issued to the assessee does not have any whisper about the statement of Ms. Parul Ahluwalia that her statement is being used adversely against the assessee. It is sub....