2025 (11) TMI 1469

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....the assessee had during the assessment year 2017-2018 and the impugned assessment year 2018-2019 sold saree to M/s Faithful Cloth Merchants Pvt. Ltd. The total sales was to an extent of Rs. 30,13,950/-, however, it was the submission that the AO has taken figure at Rs. 30,11,125/-. it was the submission that the assessee had sold during the assessment year 2017-2018 sarees to an extent of Rs. 15,08,700/- and during the impugned assessment year sarees were sold at Rs. 15,02,250/-. The ld.AR drew my attention to page 19 of the paper book which is ledger account of the assessee in the books of M/s Faithful Cloth Merchants Pvt. Ltd., which reads as follows :- 4. It was the submission that that on 25.01.2017 and 22.04.2017 sarees were sold an....

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....ansaction before the Assessing Officer in response to notice issued u/s.133(6) of the Act and the owner of the building having confirmed the existence of the business during the relevant period, it could not be said that the assessee has not proved the transaction. It was the submission that the assessee has sold sarees and there was no possibility of using lorry or weigh bridge. It was the submission that the addition made by the ld. Assessing Officer and confirmed by the ld.CIT(A) is liable to be deleted. 5. In reply, ld. Sr. DR submitted that the details in regard to transactions were not produced by the assessee. He reiterated the stand taken by the Assessing Officer that there was no lorry receipts and weigh bridge slips. It was the....

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....rly shows that the assessee has proved the identity, genuineness and creditworthiness of the said M/s Faithful Cloth Merchants Pvt. Ltd. though the same is not required to be proved insofar as it is only a sale of sarees to the said M/s Faithful Cloth Merchants Pvt. Ltd. As it is noticed that the details as called for by the AO as provided by the assessee and the purchaser being M/s Faithful Cloth Merchants Pvt. Ltd., I am of the view that the same cannot be treated as unexplained money u/s.69A of the Act in the hands of the assessee. Thus, the addition as made by the ld. AO and confirmed by the ld.CIT(A) stands deleted. 7. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 23/07/2025.....