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2020 (3) TMI 875 - AT - Income TaxExcess cash found in search - addition based on document impounded during the course of survey - HELD THAT:- AO has incorrectly picked up the figure of ₹ 2,45,290/- against ₹ 7,02,030/- appearing in the books of account. Even otherwise, during the assessment proceedings, nothing adverse was pointed out by the AO, therefore, regarding the difference of ₹ 4,45,460/-, fact that the cash does not belong to the assessee was also completely ignored by AO and Ld. CIT(A). Keeping in view of the facts and circumstances of case and in view of the supporting documentary evidences at APB page no. 129-134, the addition in dispute is not sustainable in the eyes of law, therefore, we delete the addition of ₹ 9,02,200/- and allow the ground no. 2 raised in the appeal. Bogus purchases - HELD THAT:- AO has incorrectly picked up the figure of ₹ 2,45,290/- against ₹ 7,02,030/- appearing in the books of account. Even otherwise, during the assessment proceedings, nothing adverse was pointed out by the AO, therefore, regarding the difference of ₹ 4,45,460/-, fact that the cash does not belong to the assessee was also completely ignored by AO and Ld. CIT(A). Keeping in view of the facts and circumstances of case and in view of the supporting documentary evidences at APB page no. 129-134, the addition in dispute is not sustainable in the eyes of law, therefore, we delete the addition and allow the ground no. 2 raised in the appeal. Disallowance of purchase from three parties - HELD THAT:- When books of accounts have not been rejected, no disallowance of purchases can be made - we are of the view that the AO has not doubted the sale made by the assessee in the absence of the same, disallowance on account of purchases cannot be made. Secondly, the AO has not rejected the books of account as required under section 145 of the I.T. Act, therefore, the addition on account of purchases cannot be made. As stated by the Ld. Counsel for the assessee that the proof of the documentary evidences at page no. 253 to 265, the assessee company was assessed u/s. 143(3) of the Act in the subsequent years and no such addition has been made by the AO - Decided in favour of assessee.
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