TaxTMI 
TaxTMI 
TaxTMI 
2024 (12) TMI 984
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....the Act on 31-12-2019. The grounds of appeal read as under: - The order of the Commissioner of Income Tax(Appeals) NFAC, in so far as it is against the assessee, is contrary to law, erroneous and unsustainable on the facts of the case. I. ADDITION u/s. 69 OF THE ACT : 1.The CIT(A) NFAC erred in confirming the addition of Rs. 1,29,99,000/- as unexplained money under sec.68 of the Act. 2.The CIT(A) NFAC failed to appreciate that the cash deposited in the bank accounts were the amounts realized from sundry debtors, namely, Nagore Timber Traders, Sri Vijayalakshmi Timber & Tiles, Mubarak Traders, Kumaravilas Timber Mart, Sree Balaji Timbers and Sri Maruti Timbers and the addition u/s. 68 was wholly unjustified and unsustainable on the f....
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....tock suffered by assessee in the Dec.2015 floods and hence the write off by assessee was fully justified. 9.The CIT(A) NFAC further failed to appreciate that in the A.Y.201617, this amount was shown as 'Insurance receivable' in the P & L a/c and since the insurance company rejected the claim, the assessee had to write-off the loss as not recoverable in the current year and hence confirming the disallowance was improper and unjustified. III ESTIMATED ADDITION OF SUNDRY CREDITORS : 10.The CIT(A) NFAC erred in confirming the estimated addition of the sundry creditors to the extent of the gross profit of assessee. 11.The CIT(A) NFAC failed to appreciate that substantial amount is with reference to the overseas creditors and the ....
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....e impugned issues are adjudicated as under. The assessee being a partnership firm is stated to be trading in timber. 3. Addition of cash deposits 3.1 To verify the source of cash deposited by the assessee during demonization period, the case was subjected to scrutiny. It transpired that the assessee deposited cash of Rs. 579.81 Lacs during entire financial year out of which sum of Rs. 129.99 Lacs was deposited during demonetization period. 3.2 The assessee submitted that cash was received from various parties which were duly recorded in the books of accounts. The cash as available with the assessee was sourced to make these deposits. The assessee stated the cash was received from six debtors as detailed in the assessment order. The Ld. A....
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....y the debtors. The assessee duly recorded the transactions in its books of accounts regularly maintained in the regular course of business. The assessment order does not bring out any such fact that the impugned deposits were unexplained money. However, Ld. CIT(A) rejected the same and confirmed the addition. Aggrieved, the assessee is in further appeal before us. 3.5 From the facts, it emerges that the assessee is a partnership firm and it is carrying out trading of timber. The substantial sales are in cash which is evident from the fact that the assessee has deposited cash of Rs. 579.81 Lacs during entire financial year. A part of that happens to fall during demonetization period. However, the business model as well as the source of rema....
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.... 4.2 During appellate proceedings, the assessee explained that during floods of December, 2015, the trading stock was washed away and the assessee suffered huge losses. The assessee made a claim with the insurance agency for the year ending 31-03-2016. The amount so recoverable was offered to tax by way of credit to Profit & Loss Account in that year. In this year, the insurance company rejected the claim and accordingly, the claim was written-off / reversed in this year. The same would be allowed since the same was already offered to tax in earlier years. However, Ld. CIT(A) rejected the same and confirmed the addition. Aggrieved, the assessee is in further appeal before us. 4.3 Upon perusal of Profit & Loss Account for the year ending 3....