TaxTMI 
TaxTMI 
2024 (5) TMI 1241
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....pilation of Paper Book. 2. On the peculiar facts of the case and in law, the assessment order was liable to be annulled because the learned AO had allowed time of just 2 days to the appellant for making compliance of final show cause notice dt. 19.12.2019 (fixing compliance for 21.12.2019), which in any case was too short. 3. On the peculiar facts of the case and in law, the assessment order was liable to be annulled because the learned AO had failed to allow due opportunity to the appellant to explain/reconcile the differences which were observed by her in the replies directly called for by her from the appellant's two suppliers namely M/s Preetí Trade Link (P) Ltd. and M/s Kajaria Ceremics Ltd. (at the back of the appellant), which instances had adversely influenced her mind. 4. On the peculiar facts of the case and in law, there was no justification to treat the sales of Rs. 7391167/- recorded in the books of account for the month of October 2016, as nongenuine. 5. On the peculiar facts of the case and in law, there was no justification to treat the amount of Rs. 7000000/-, as the unexplained income of the appellant. 6. On ....
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....ons u/s 131 of the Income Tax Act, 1961 to M/s Kajaria Ceramics Ltd. and M/s Preeti Trade Link Pvt. Ltd. The transactions as per the assessee and as per the parties is as under: Item As per assessee As per M/s Preeti Trade Link Pvt. Ltd. Total sale 1,04,09,529 1,90,00,000 Closing balance 1,22,750 As per assessee As per M/s Kajaria Ceramics Ltd. Total sale 72,18,100 Closing balance 3,04,033 63,407 4. Further, the details of sales & purchase are as under: Month Purchase along with party detail Sales along with party detail. Purchase sales April, 2016 10249773 12285158 9381238 11813804 May, 2016 10268306 12482384 9482478 12032215 June, 2016 14175483 17118990 13058372 16199773 July, 2016 14966762 16212676 14041243 15651160 August, 2016 10574041 10824214 9983432 10408541 September, 2016 13665953 10259176 12895476 9812144 October, 2016 8925878 13516523 8534558 12313226 November, 2016 14834093 18341635 14551713 17242907 December, 2016 13236584 11515682 13236584 ....
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....s. 58,383/- is hereby deleted and the balance addition of Rs. 69,41,617/- is hereby confirmed. Accordingly, the grounds of appeal are partly allowed. 4.7 Ground No. 6, 7, 8 & 9 The AO has stated that, the appellant had furnished submission on 02.12.2019, wherein the appellant had shown total cash deposits of Rs. 1,00,40,000/-, whereas the submission uploaded by the appellant on same day, wherein the appellant has shown cash deposit between 9.11.2016 and 30.11.2016 is Rs. 96,00,000/-. The AO has stated that, this proves that, the difference of the above amount of Rs. 4,40,000/-, which was deposited in the bank remains unexplained and therefore, the AO added Rs. 4,40,000/- to the total income of the appellant. 4.8 As stated above, the appellant had furnished written submission wherein he had shown total cash deposit of Rs. 1,00,40,000/-. Whereas the appellant had uploaded the submissions in the online portal of the Department, where he had shown total cash deposit as Rs. 96,00,000/-. As the appellant has not furnished any explanation in this regard, the AO had made addition of Rs. 4,40,000/- a difference in two submissions i.e. Rs. 1,00,40,000 and Rs. 96,00....
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....ce of M/s Kajaria Ceramic Ltd. GVT with the closing balance of M/s Kajaria Ceramic Ltd. VITRIFIED. Since, the closing balances have been reconciled. We hold that no addition is called for on this account. 11. With regard to the jump in the sales in October, we have gone through the details of sales & purchases mentioned by the Assessing Officer which are as under: Month Purchase along with party detail Sales along with party detail. Purchase sales April, 2016 10249773 12285158 9381238 11813804 May, 2016 10268306 12482384 9482478 12032215 June, 2016 14175483 17118990 13058372 16199773 July, 2016 14966762 16212676 14041243 15651160 August, 2016 10574041 10824214 9983432 10408541 September, 2016 13665953 10259176 12895476 9812144 October, 2016 8925878 13516523 8534558 12313226 November, 2016 14834093 18341635 14551713 17242907 December, 2016 13236584 11515682 13236584 10787771 January, 2016 23924214 22109606 22147340 20570392 February, 2016 19420498 20444478 18217991 19115924 March, 2016 17924562 ....
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.... 43,27,397/- in the F.Y. 2016-17. A show cause notice was issued to the appellant to explain the same. The AO has relied upon the section 40A(3) of the Act, where the appellant incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than account payee cheque or account payee bank or use of electronic clearing system through a bank account, exceeds Rs. 20,000/- (w.e.f. A.Y. 2018-19 Rs. 10,000/-) no deduction shall be allowed in respect of such expenditure. The AO has stated that, the appellant has not furnished any documentary evidence to substantiate the cash purchases made in the year and therefore, the AO disallowed Rs. 43,27,397/- u/s 40A(3) of the Act and added back to the income of the appellant. 4.10 During the assessment proceedings, the AO required the appellant to explain with regard to cash purchases shown of Rs. 43,27,397/-. As AO has stated that, no explanation was furnished by the appellant, the AO added as per provisions of the section 40A(3), Rs. 43,27,397/- to the total income of the appellant. During the appellate proceedings, the appellant has not furnished reply or documentary evidence to establi....