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2015 (3) TMI 1401 - ITAT HYDERABADExcess cash as generated from unaccounted sales - No explanation to difference in cash either during the survey proceeding or in course of assessment proceeding - HELD THAT:- There is no dispute to the fact that on physical verification excess cash was found at the time of survey. AO has treated excess cash as unexplained income of assessee by alleging assessee failed to explain the source of excess cash. However, it is the contention of assessee before ld. CIT(A) as well as before us that excess cash found at the time of survey belong to partners of HUF. On perusal of the returns filed electronically by Giridharlal & Sons, HUF for the AYs. 2008-09 and 2009-10, it appears that not only the returns were filed prior o the date of survey, but, the HUF is also generating some amount of income. The balance sheet as on 31/03/08 also shows cash in hand of ₹ 70,000. Therefore, assessee’s claim that excess cash actually belong to HUF cannot be out rightly rejected. In the aforesaid view of the matter, considering the fact that assessee’s explanation with regard to excess cash is plausible, the addition made cannot be sustained. Accordingly, we delete the same. Estimate gross profit on the alleged suppression of sale - HELD THAT:- No material has been brought to our notice by ld. DR to even remotely indicate assessee has indulged in suppression of sale. Drop in sales for the post survey period may be due to various reasons but without bringing any material on record to suggest suppression of sales, merely on assumptions and presumptions sales cannot be estimated by alleging suppression of sales by assessee. More so, when it is a fact on record that assessee regularly files its VAT returns disclosing sales turnover, which is in accordance with the books of account and authorities under the VAT Act have not pointed out any sales suppression. At least nothing of the sort has been brought to our notice. As regards the decision of RAJNIK AND CO. [2001 (4) TMI 53 - ANDHRA PRADESH HIGH COURT] on careful examination of the same, we are of the view that it is not applicable to the facts of the present case as in the case decided by the Hon’ble High Court there were evidences on record to show that assessee has suppressed sales. Whereas, in the present case there is not even a single piece of evidence to show that assessee has suppressed its sales. In view of the aforesaid, we hold that addition made by estimating sales is not proper, hence, cannot be sustained. Accordingly, we delete the same.
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