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2014 (5) TMI 699 - ITAT DELHIConfirmation of addition made u/s 68 of the Act - Search and seizure – Cash sales made – Held that:- There is no law which prohibits a trader or a manufacturer in making cash sales – Relying upon R.B.Jessaram Fatehchand (Sugar Deptt) VS. CIT [1969 (7) TMI 10 - BOMBAY High Court ] - sales can be in cash and it is hardly necessary for the seller to bother about the name and address of the purchaser - so long as the availability of stock is there and there is nothing adverse against the cash memos issued by the assessee, such cash sales cannot be doubted - the volume of such cash sales at ₹ 22.06 is to be seen in the light of the assessee’s total turnover of ₹ 10.29 crore - It is but natural that if a customer makes cash purchase and lifts the goods, there is no duty cast upon the seller to insist for the address of the purchaser – the assessee has himself offered the amount of cash sales as his income by duly including it in his total sales -once a particular amount is already offered for taxation, it cannot be again considered u/s 68 of the Act - thus, any addition cannot be made by treating cash sales as bogus – Decided in favour of Assessee. Deletion of addition made during search – Held that:- The assessee has stated before the AO that a sum of ₹ 30.62 lacs belonged to Premji Bhanushali and Radha Bhanushali - The fact was confirmed by these two persons as well - when the assessee’s brother and his wife admitted the possession of cash belonging to them, there can be no reason for making addition in the hands of the assessee in respect of cash when the facts and circumstances amply show that the cash did belong to them - It is for them to explain the source of cash available with them in their respective hands - CIT(A) has rightly appreciated the facts in directing to delete the addition by asking the AO – Decided against Revenue. Deletion of amount credited to capital account – Held that:- The AO specifically requisitioned the assessee to explain the source of fresh capital amounting to ₹ 19.00 lacs and odd introduced in his books of accounts - The assessee gave only sketchy reply which has been reproduced above - CIT(A) was not justified in deleting this addition by rather strangely mentioning that the addition was made in a summary manner - when a certain sum is credited to the assessee’s capital account, the onus is on him to explain the source of such deposit to the satisfaction of the AO - thus, the order of the CIT(A) is set aside and the matter is remitted back to the AO for fresh adjudication – Decided in favour of Revenue.
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