TaxTMI 
TaxTMI 
2026 (5) TMI 667
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....IT(A)") dated 02/09/2025 for the A.Y.2017-18. 2. The assessee has raised the following grounds of appeal: 1. The order of the Id. First Appellate Authority is not correct either on facts or in law and in both 2. The Id. First Appellate Authority is not justified in confirming an addition of Rs. 84.83,800/- u/s.68 ignoring the submissions made. 3. The Id. First Appellate Authority is not justified in not appreciating the fact that the said sum of Rs. 84,83,800/- was received against the sale of goods regularly dealt with by the appellant and fully supported by necessary documentary evidences. 4. The Id. First Appellate Authority is not justified in confirming the disallowance of expenditure of Rs. 11,60....
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....s. The Ld. AO noted that the invoices produced by the assessee were computer-generated printouts without stamp and that the assessee failed to produce purchase orders and delivery challans. On this basis, the Ld. AO treated the amount of Rs. 84,83,800/- as unexplained cash credit under section 68 of the Act. Further, the Ld. AO examined various expenses such as petrol expenses, rate difference, salary and sealling expenses, which were higher as compared to the preceding year. The assessee was asked to furnish supporting bills and vouchers; however, only ledger extracts were produced by the assessee. In the absence of supporting evidences, the Ld. AO made a disallowance of 10% of such expenditure amounting to Rs. 11,60,640/-. Accordingly, th....
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....y defect in the books of account, nor rejected the purchases or stock records maintained by the assessee. It was contended that once the books of account are accepted and sales are recorded therein, the addition under section 68 of the Act cannot be made merely on suspicion. It was also argued that the Ld. AO has failed to establish any trail of cash being returned by the assessee to M/s Rameshwaram Impex in lieu of the cheque payments received. It was further submitted that the addition has been made solely on the basis of the statement of Mr. Dipashu Gupta, who is a third party not only to the assessee but also not directly connected with M/s Rameshwaram Impex. It was also contended that no adverse statement has been brought on record fro....
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....s not established any evidence of cash being routed back by the assessee to the said party in lieu of the amounts received through banking channels. The addition has primarily been made on the basis of a statement of a third party, namely Mr. Dipashu Gupta, without bringing any independent corroborative evidence on record. Moreover, no adverse material or statement from Mr. Alpesh Shaw, the proprietor of M/s Rameshwaram Impex, has been brought on record to substantiate the allegation that the transactions are non-genuine. Therefore, in our considered view, once the sales are duly recorded in the books of account, supported by documentary evidences, and the books of account have not been rejected, the amount received against such sales canno....