TMI Blog2022 (7) TMI 1381X X X X Extracts X X X X X X X X Extracts X X X X ..... e already been charged to the income of the assessee, cannot be taxed again under section 68 of the Act. Also in the case of CIT Vs. Devi Prasad Viswanath Prasad [ 1968 (8) TMI 5 - SUPREME COURT ] on the issue of additions under section 68 held that It is for the assessee to prove that even if the cash receipts represents income, it is income from a source, which has already been taxed. Applying this ratio, in our view, the assessee has discharged the onus by offering the sales for taxation and therefore the same income cannot be taxed again - addition made under section 68 of the Act cannot be sustained and is therefore deleted. This ground is allowed in favour of the assessee. Addition made u/s 69C - deduction towards housing loan interest - AO concluded that there is no source for the repayment of housing loan for the assessee and hence treated an amount which the AO arrived at from the housing loan statement as unexplained expenditure u/s 69C - Addition upheld by the CIT(A) on the ground that majority of the loan is repaid in cash and the genuineness of the funds used for repayment has not been proved by the assessee - HELD THAT:- From the perusal of the cash book, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Rs.19,50,000/- under Income from Other Sources as unexplained under section 68 of the Act. 5. Aggrieved, the assessee preferred an appeal before the CIT(A) who confirmed the order. The assessee is in appeal before the Tribunal against the order of the CIT(A) passed through NFAC. 6. The learned AR submitted that: i. The disallowance is made by the AO on adhoc basis. ii. The sales account [page 532 of Paper Book] would show that the spike in sales from September 2016 has been gradual and the trend continues for the subsequent months to demonetization also. iii. The assessee s year on year sales has been on the increasing trend which is substantiated by the details furnished upto Assessment Year 2019-20. iv. The Gross Profit ratio and the Net Profit ratio have been consistent at the same level. v. The books of accounts are audited by the Chartered Accountant who had verified all the details during the course of audit and have certified the correctness and completeness of the books of accounts. vi. The AO and the CIT(A) have accepted the books of accounts including the sales numbers and therefore cannot make an addition under section 68. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the cash sales numbers of the assessee has been increasing year to year especially from the Assessment Year under consideration. In the same table, the learned AR drew our attention to the cash deposits done by the assessee during the Assessment Year which also is in line with the contention of the assessee. The learned AR also drew our attention to the fact that the Gross Profitt and Net Profit ratio of the assessee is consistent and therefore reiterated that the sales numbers are genuine. PUKHRAI, PROP. KISSAN TRADING CO., SHIMOGA `SUMMARY OF CASH DEPOSITS IN BANK A Y TO(in Cr.) Corp.Bank- 3324018011600001 SBI 6404903310 SBI Housing Loan-64073498811 TOTAL Ratio 2015-16 1.46 - 86,86,900.00 - 86,86,900.00 59.50% 2016-17 3.1 - 1,53,72,228.00 - 1,53,72,228.00 49.68% 2017-18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansport Pvt. Ltd. reported in 84 Taxman 146 on identical facts took the view that when cash sales are admitted and income from sales are declared as income, wherein the Hon'ble Tribunal found that the assessee had sufficient cash in hand in the books of account of the assesses, that there was no reason to treat the cash deposits as income from undisclosed sources. The Hon ble Vishakapatnam Tribunal in the case of ACIT Vs. Hirapanna Jewelers in ITA No.253/Viz/2020 on identical facts held that when cash receipts represent the sales which the assessee has offered for taxation and when no defects are pointed out in the books of account, it was held that when assessee already admitted the sales as revenue receipt, there is no case for making the additionu/s 68 or tax the same u/s 115BBE again. Similar view is taken by the Hon ble ITAT in the following cases: (i) The Hon ble Delhi ITAT in the case of Agons Global (P) Ltd., Vs. ACIT [ITA 3741 to 3746/Del/2019] (ii) The Hon ble Indore ITAT in the case of Dewas Soya Ltd., Vs. ITO [ITA No.336/Ind/2012]. 11. We also notice that the Hon ble Supreme Court in the case of CIT Vs. Devi Prasad Viswanath Prasad (1969) 72 ITR 194 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heard the rival submissions and perused the material on record. The correct statement of the housing loan as per the ledger of the assessee is as given below: Date Particulars Vch Type Vch No. Debit Credit 1-Apr-16 By Opening Balance 6,07,074.00 30-Apr-16 By Accrued SBM H L Interest A/c Payment 58 7,434.00 31-May-16 By Accrued SBM H L Interest A/c Payment 138 17-Jun-16 To SBMOID A/c 64049503310 Contra 55 67,000.00 By Bank Charges Payment 174 55.00 30-Jun-16 By Accrued SBM H L Interest A/c Payment 207 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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