TMI Blog2017 (7) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... verse material against the assessee on record, authorities below should not have rejected the explanation of the assessee. The onus upon revenue has not been discharged in any manner. Authorities below were not justified in considering the re-deposit of cash of ₹ 3.13 Cr as unexplained cash deposit. Therefore, set aside the impugned orders and delete the addition of ₹ 3.13 Cr in assessment year 2009-10. In assessment year 2010-11, the Assessing Officer made identical addition of ₹ 2,03,99,700/-. It is admitted fact that in this year, cash deposits were of ₹ 4,20,83,700/- against cash withdrawals of ₹ 7,60,15,550/-. This issue is admittedly same as have been considered in preceding assessment year 2009-10, therefore, following reasons for decision for assessment year 2009-10, we set aside the orders of authorities below and delete the entire addition. - Decided in favour of assessee and against revenue. - ITA Nos. 811 And 812/CHD/2014 - - - Dated:- 8-11-2016 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND Ms.ANNAPURNA GUPTA, ACCOUNTANT MEMBER For The Appellant : Shri T.N.Singla For The Respondent : Shri Ravi Sarangal ORDER PE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing the decision of Hon'ble Punjab Haryana High Court in the case of Prabhat Kumar (supra). These grounds were accordingly dismissed. 5. The ld. counsel for the assessee fairly admitted that in preceding assessment years 2007-08 and 2008 09, the assessee preferred appeals before ITAT Chandigarh Bench in ITA Nos. 558 559/2014 on the identical issue in which also net profit rate of 12% was applied by the Assessing Officer on identical facts and the Tribunal vide order dated 17.09.2015 dismissed both the appeals of the assessee finding that net profit of 12% on gross receipts is reasonable by following decision of the Hon'ble Punjab Haryana High Court in the case of Prabhat Kumar. The ld. counsel for the assessee, therefore, submitted that issue is covered against assessee by order of ITAT Chandigarh Bench dated 17.09.2015 (supra). Copy of the order is placed on record. 6. After considering the above facts, we are of the view that on identical facts the Tribunal has already decided the similar issue against the assessee vide order dated 17.09.2015 and confirmed the application of net profit rate of 12% for the purpose of estimating business income of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atement filed, there is sufficient cash in hand available on each day during the financial year. This cash-flow statement is prepared by the assessee from cash deposit and cash withdrawals in the banks during the year. Further, assessee had given some bayanas for land in earlier year which were received during the year which was also available to the assessee, therefore, the benefit of which should have been allowed by the Assessing Officer. It was further submitted that Assessing Officer made addition of ₹ 27,06,166/- of lesser GP, such benefit should also be allowed to the assessee. 10. The ld. CIT(Appeals), considering explanation of the assessee rejected the contention of the assessee and dismissed appeal. 10(i) The ld. counsel for the assessee reiterated the submissions made before authorities below and submitted that cash withdrawals are more than the cash redeposits in the bank accounts. Cash-flow statement have not been doubted by the authorities below. No negative cash was found in cash-flow statement or in the bank accounts. No investments were found out of cash withdrawals. Since assessee did not maintain books of account therefore, cash-flow statement was re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o produce cash-flow statement which was submitted by assessee before Assessing Officer. 11(i) The Assessing Officer on perusal of the cash flow statement found that assessee had made cash deposits to the tune of ₹ 4,30,58,100/- and cash withdrawals amounting to ₹ 7,65,40,797/- during the period under consideration. Total receipts of the assessee from business in a sum of ₹ 6.78 Cr are sufficient to meet out the re-deposit of the cash in bank account of the assessee. The Assessing Officer himself asked the assessee to prepare cash-flow statement which is filed before authorities below, copies of same are also filed before us supported by various bank statements under consideration. The A.O. and CIT(A) did not doubt the cash-flow statement supported by bank statements. It would, therefore, prove that assessee has made cash withdrawals during the year in a sum of ₹ 7.65 Cr and made re-deposit of ₹ 4.30 Cr. No negative cash was found on any day as per cash flow statement. No discrepancy in the cash-flow statement, prepared on the basis of bank accounts of the assessee, was found. Since no books of account have been maintained by assessee, therefore, cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h book and ledger. The printout of computerized cash book and ledger were also produced before the Assessing Officer. It was also explained that the bank account of Kotak Mahindra Bank, Rajpura has been shown in the books of account but due to mistake the balance was transferred to expenses account instead of the balance being taken to balance sheet. The Assessing Officer also noted the fact that the amount deposited in cash in this bank account has small deposits as well as withdrawal of the cash immediately either on the same day or the next day of the deposits. The Assessing Officer also noted that all the entries appearing in the bank statement have been put by the assessee in cash book also, though the Assessing Officer disbelieved the entries contained in the cash book and considered it to be an after thought. In this background, it is clear that the assessee is a retailer and filed return of income with the aid of section 44 AF of the Act. Therefore, the assessee need not to maintain any regular books of account. It is a fact that in the assessment year under appeal the assessee made various cash deposits in the bank account maintained with Kotak Mahindra Bank, Rajpura but t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modify the orders of the authorities below and delete the addition of ₹ 10 lacs, the addition would now be restricted to ₹ 7,35,000/-. The ground Nos. 1 and 2 of the appeal of the assessee are partly allowed. 12(ii) The ITAT Chandigarh Bench in the case of ITO Vs Ashok Kumar Jain (supra) held in para 4 as under : 4. We have heard the rival submissions and have perused also the materials assailable on record. Shri Sudhir Sehgal Ld. Counsel for the assessee submitted that Assessing officer while completing the assessment had totally overlooked the details of cash in hand available with the assessee as per balance sheet as on 31.3.2007. He further pointed out that regular books of accounts are being maintained by the assessee and all the entries of cash withdrawals and cash deposits are duly recorded in the cash ledger account. He further pointed out that the returns are being filed on the basis of books of account even in the earlier years. As per the balance sheet, the cash in hand available with the assessee on 31.3.2007 was ₹ 13,48,638/-. It is stated that the cash available on the aforesaid date was out of withdrawals made from ICICI bank wherein the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) further observed that assessee had explained during the course of assessment proceedings that cash was withdrawn with the intention to buy some properly. The Ld. CIT(A) has categorically observed that actual amount of cash required in these circumstances would be known to the assessee only. He has also stated that there is no bar in keeping the cash at home according to requirements. Thus, observations of the Ld. CIT(A) are correct and, therefore, we do not see any infirmity in the order of the CIT(A). The question involved in this case is of facts and the Ld. CIT(A) has correctly appreciated the facts of the case and decided the issue correctly. In view of the above discussion, we do not find any merit in the appeal filed by the Revenue and accordingly we dismiss the same. 12(iii) The ITAT Chandigarh Bench in the case of ACIT Vs Joginder Pal (supra) considered the same issue on filing of the cash-flow statement, dismissed the departmental appeal. The cash was duly reflected in the Wealth Tax Return. 12(iv) Considering the above discussion, it is proved by the assessee on record that assessee has made cash withdrawals during the year under consideration from various bank ..... X X X X Extracts X X X X X X X X Extracts X X X X
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