2025 (1) TMI 1652

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....) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') 18.12.2019. The assessee has raised following grounds of appeal: "(1) The ld. CIT(A) has erred in law and on facts in confirming the action of the ld. AO of making addition u/s 69A of the Act to the tune of Rs. 77,13,800/-. (2) The ld CIT(A) has erred in law and on facts in confirming the action of the ld. AO of charging tax u/s 115BBE of the Act on the above addition of Rs. 77,13,800/-. (3) Each ground of appeal is independent and without prejudice to the other ground / grounds of appeal. (4) The appellant craves leave to add, amend, alter, modify, substitute, delete, change or vary as all or any of the ground or grounds of appeal." ....

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....se. The assessee furnished complete details with regard to both the bank accounts. The accounts of assessee are audited. The debit entry clearly reflects that such debit entry was in favour of R.K./Patel Food Pvt. Ltd. Matangi Cotton Industries, Nilkanth Cotton Industries, which is one of the primary food for cattle. During assessment, assessee furnished certain purchase bills and submitted before Assessing Officer. The Assessing Office rejected the contention of assessee and made addition of entire amounts in cash credit in both the bank accounts without giving any benefit of purchase. Majority of amount were debited on account of purchases. It is settled law that gross sales which is deposited in the form of cash income never be the profi....

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..... Senior Departmental Representative (Ld.SR-DR) for the Revenue supported the order of lower authorities. 5. We have heard the submission of both the parties and have gone through the orders of lower authorities carefully. We have also deliberated the case law relied upon by Ld. AR of the assessee. We find that Assessing Officer during assessment accepted that assessee is engaged in the business of trading of cattle food. The main allegation of Assessing Officer is that the assessee has not shown bank account Nos.****53845 and ****33476 in his books of account and has not debited cash book and other credits while computing total income and that those bank accounts as undisclosed. The Assessing Officer made addition of entire credit in bo....

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....ve been sold has been made by the assessee and that has also not been disclosed the question whether entire sum of undisclosed sales proceeds can be treated as income. Further, in case of CIT vs. Gurubachhan Singh J. Juneja (2008) 171 Taxman 406 (Guj) also held that when the addition made by Assessing Officer was deleted by Tribunal holding that assessee could not be taxed on entire amount but was liable to be taxed only on gross profit earned on said sales. In the said case, the Tribunal made addition of gross profit and brought the same to the tax, the Hon'ble High Court held that no interference can be called for. 7. Further, the co-ordinate Bench of this Tribunal in case of DCIT vs. Mehul T Desai in ITA No.350/Ahd/2017 dated 13.12.20....