TMI Blog2023 (2) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... n any basis of arriving at such interest percentage. The Bench finds from the available records that during the course of hearing the assessee had supplied all the details before the lower authorities like books of accounts, details of financial statement and bank account etc. but it was ignored. It is also noted that the assessee had made elaborate submissions before the ld. CIT(A) which were also not controverted by the ld. CIT(A) in his order. In view of the above facts and circumstances of the case, the Bench finds that the addition sustained amounting by the ld. CIT(A) is deleted. - Decided in favour of assessee. - ITA No. 274/JP/2020 - - - Dated:- 8-2-2023 - Hon ble Shri Sandeep Gosain, Judicial Member For the Assessee : Shri Rajeev Sogani, CA And Shri Rohan Sogani, CA For the Revenue : Smt. Monisha Choudhary, JCIT ORDER PER: SANDEEP GOSAIN, JM This appeal filed by the assessee is directed against order of the ld. CIT(A)- 2, Jaipur dated 7-02-2020 for the assessment year 2008-09 wherein the assessee has raised the following grounds of appeal. 1. In the facts and circumstances of the case and in law the AO has erred in reopening the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining, all persons shall have a limitation period of 90 days from 01-03-2022. In the event of actual balance period of limitation remaining, with effect from 01-03-2022 is greater than 90 days, that longer period shall apply. Thus the Bench finds that there is nationwide Covid 19 Pandemic situation which is beyond the control of the human being and the assessee is prevented by sufficient cause in not filing the appeal in time. The Hon'ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji, 167 ITR 471 observed as under:- The Legislature has conferred power to condone delay by enacting section 5 of the Limitation Act, 1963, in order to enable the courts to do substantial justice to parties by disposing of matters on merits. The expression sufficient cause in section 5 is adequately elastic to enable the courts to apply the law in a meaningful manner which subserves the ends of justice--that being the life-purpose of the existence of the institution of courts. A justifiably liberal approach has to be adopted on principle. Every day's delay must be explained does not imply a pedantic approach. The doctrine must be applied in a ratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess transaction, assessee, before the lower authorities, prepared, entire books of accounts, which were submitted to them during the course of assessment and the appellate proceedings. Entire such books of accounts have also been enclosed as part of Paper Book before the Hon'ble Bench. [PB: 4-15, 31-33] 2.2. No defects, with any cogent basis, could be pointed out by the lower authorities in the books of accounts so produced before them. 2.3. It is a trite law that once the assessee offers income under Section 44AD on presumptive basis, the assessee is not required to maintain books of accounts on a regular basis. 2.4. Even though the assessee was not required to maintain Books of Accounts, however, in order to substantiate the cash receipts for the year under consideration, entire Books of Accounts were prepared. No defects could be pointed out by the lower authorities in the Books of Accounts so produced before them. 2.5. Ld. AO during the assessment proceedings [AO Order Page 4], alleged certain details regarding the payment made through banking channel made by assessee, could not be submitted. However, Ld. AO has ignored the fact that the entire books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to him during assessment proceedings, wherein, all such details were mentioned. Moreover, Id. AO is doubting the utilization of funds of the assessee, whereas, Id, AO ultimately made additions by considering the cash received by the assessee and subsequently deposited by him in his bank account, to be unexplained. 2. 10. Contentions were raised, during the appellate proceedings, before id. CIT(A). against the observations made by the Id. AO, during assessment proceedings. However, those contentions were not controverted by the Id. CIT(A). 2.11. Ld. CIT(A) simply, without any cogent basis, without controverting to the submissions made by the assessee, upheld the additions made by the Id. AO However, Id. CIT(A) provided relief to the extent of the amount withdrawn by the assessee, from his bank account, subsequent to its deposition. Such amount was Rs. 3,17,850. [CIT(A) Order 9-10] In view of the above, additions made by the Id. AO and sustained by the Id. CIT(A) deserve to the deleted as the assessee had been able to prove the bona-fides of the transactions entered by him, during the course of his business, by even submitting the entire books of accounts. Further, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) and no defect was pointed out by the lower authorities in the books of account produced by the assesse. It is a trite law that once the assessee has offered income u/s 44AD of the Act on presumptive basis then assessee is not required to maintain books of account on a regular basis but the assessee produced the books of account before the lower authorities. It is noted from page 4 of the assessment order wherein the AO alleged that the assessee made cash sale of Rs.17,76,160/- against cash purchase of Rs.1,90,500/- for which the ld. AR of the assessee submitted that out of the cash deposited by the assessee in his bank account payments were made for purchase of vegetables, resultantly, out of total purchases of Rs.11,00,997/-, Rs.9,10,947/- were made through banking channel, Rs.1,90,500/- were in cash and Rs.1,25,000/- remained as payable and this factual position was clearly disenable from the books of accounts land financial statements submitted by the assessee. It is also noted from the assessment order that the assessee had paid interest of Rs.57,935/- on the outstanding balance of the bank account maintained by the assessee and it can be seen at page 4 of the Assessment Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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