TaxTMI 
TaxTMI 
2026 (5) TMI 1321
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.... The brief facts of the case are that the assessee did not file its return of income for A.Y. 2017-18. The AO had received an information that the assessee had made transactions totalling Rs. 5,41,34,906/- during the year. Therefore, a proceeding u/s. 147 of the Act was initiated by issue of notice u/s. 148 of the Act on 28.03.2021. In the course of assessment proceeding no compliance was made by the assessee. Therefore, the assessment was completed ex-parte u/s. 147 r.w.s. 144B of the Act on 29.03.2022 at total income of Rs. 4,14,05,906/- wherein various additions were made. 3. Aggrieved with the order of the AO, the assessee had filed an appeal before the first appellate authority, which was decided by the learned CIT(A) vide the impug....
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....,08,15,150/- as unexplained and accordingly made the addition. The Ld. CIT-DR submitted that the assessee had filed certain fresh evidences before the Ld. CIT(A) on which remand report of the AO was called for. It was found that the actual cash deposits in the bank account was Rs. 1,75,18,000/- only, which was explained to be sale proceeds of tractors. The Ld. CIT-DR submitted that the Ld. CIT(A) was not correct in deleting the addition for actual cash deposits of Rs. 1,75,18,000/-pertaining to which no concrete evidence was brought on record. According to the Ld. CIT-DR, the complete evidence for sale of tractors to famers and receipt of cash from them, was not brought on record. Therefore, the Ld. CIT(A) was not correct in deleting the ad....
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....nd report. The only objection of the AO was that copy of purchase bill/invoice for the sales made to farmers, was not produced. According to the AO, from the details filed by the assessee the fact of cash receipts being on account of sale of tractors, was not established. It is found that the assessee had produced cash book, sales registers and RTO registration of tractors sold to farmers. The AO did not make any effort to verify these evidences and had given only a perfunctory remark in the remand report that complete documentary evidences were not filed. No defect in the evidences brought on record by the assessee was pointed out by the AO. Further, nothing prevented the AO from making further inquiries in the course of remand proceeding,....
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....ed by the appellant during the present appellate proceeding, which were duly examined and taken into consideration, while adjudicating the appeal. 5.6 Further, the appellant also provided ledger account of Mahindra and Mahindra from whom purchases was made and it is also evident from bank statement that payments were made to Mahindra and Mahindra from cash deposited in bank account. It is observed that the said cash was generated from sales of tractors to farmers. Since, the cash was generated from sales and duly accounted for in books of accounts of the appellant, it cannot be treated as unexplained. Hence, the AO is directed to delete the addition amounting to Rs. 4,08,15,150/- as unexplained cash credits u/s. 69A of the Act, mad....