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2015 (8) TMI 215 - ITAT AHMEDABAD

2015 (8) TMI 215 - ITAT AHMEDABAD - TMI - Addition on account of unaccounted sales - CIT(A) deleted part addition - Held that:- AO without controverting the submissions/evidence furnished by the assessee treated the total cash deposits as income of the assessee. The AO did nothing to demonstrate that the purchase of retail business had been accounted for in the purchase of whole sale business. The above finding of the ld.CIT(A) has not been controverted by the Revenue by placing any material on .....

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of the creditors in respect of these persons.As far as genuineness of the transactions with other six persons is concerned, confirmation from these persons are already on record. Since amounts involved are small and these persons are intimately related with the appellant, it can be safely assumed that these amounts are accrued with these persons over a period of time. In this regard, the appellant has rightly placed reliance on Sunil Dua v/s. CIT (2008 (1) TMI 634 - Delhi High Court ) In view of .....

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r of the Ld.Commissioner of Income Tax(Appeals)-XI, Ahmedabad [ CIT(A) in short] dated 28/02/2011 pertaining to Assessment Year (AY) 2006-07. The appeal and the cross objection are taken up together and are being disposed of by this consolidated order for the sake of convenience. 2. First, we take up the appeal filed by the Revenue, i.e. ITA No.1226/Ahd/2011. The Revenue has raised the following grounds of appeal:- 1. The Ld.Commissioner of Income tax (A) has erred in law and on facts in deletin .....

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f the Ld.Commissioner of Income tax (A) may be set aside and that of the Assessing Officer be restored. 2. Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,1961 (hereinafter referred to as the Act ) was framed vide order dated 22/12/2008, thereby the Assessing Officer (AO in short) made addition on account of unaccounted sales of ₹ 9,62,850/- and bogus cash credits amounting to ₹ 1,60,000/ .....

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,00,850/- out of addition of ₹ 9,62,850/-. The ld.Sr.DR supported the order of AO and submitted that the AO and the ld.CIT(A) was not justified in deleting the addition. He submitted that the AO has given a finding that the assessee in his return of income has disclosed only one division of business, wherein he has shown total sale of ₹ 39,66,370/-. He submitted that the assessee was contraverted with the bank details, then he came with an explanation that he has been carried out two .....

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ailable on record and gone through the orders of the authorities below. We find that the ld.CIT(A) has decided the issue by observing as under:- 2.2.1 As seen from his account No.0811 0010 002123 with Kotak Mahindra Bank, cheque payments were made to Jai Jinendra Ent.(assessed with the same AO), from whom he stated to have made purchases for retail business. As against total deposits (cash + cheque) made of ₹ 16.62 lakhs in the said account, withdrawals of ₹ 16.63 lakhs were made (op .....

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ned to accept the appellant s plea that the impugned amount be taken to be the turnover and G.P. be estimated. It is seen that G.P. of the appellant s wholesale business is 11.70%. Since the retail business is more profitable, G.P. of retail business is estimated at 15%. Accordingly 15% of 10.8 lakhs, which works out to ₹ 1,62,000/- is taken to be the G.P. Since appellant has not even claimed (leave alone demonstrate) that any other expenses (over and above those incurred for whole-sale bu .....

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t withdrawals of ₹ 16.63 lakhs were made. The AO without controverting the submissions/evidence furnished by the assessee treated the total cash deposits as income of the assessee. The AO did nothing to demonstrate that the purchase of retail business had been accounted for in the purchase of whole sale business. The above finding of the ld.CIT(A) has not been controverted by the Revenue by placing any material on record. Under these facts, we do not any reason to interfere with the order .....

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rected by the ld.CIT(A). He further submitted that the ld.CIT(A) in the appellate order dated 13/07/2012 has deleted the addition. He submitted that against that order, the Revenue has not preferred any appeal. 8. We have heard the rival submissions, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) in the order under appeal, after considering the submissions, in para-3.2 of his order had directed the AO to verify the assess .....

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allowed for statistical purposes. 8.1. It is submitted that the while giving appeal effect the AO had again sustained the addition which were subject matter of appeal before the ld.CIT(A) and the ld.CIT(A) has deleted the addition. Against that order, the Department has not filed any appeal. So far as the action of the ld.CIT(A) in restoring the issue back to the file of AO for verifying the assessee s contentions that the show-cause notice was issued is concerned, the ld.CIT(A) has not given a .....

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ine persons. Out of these nine persons, following three persons are assessed to tax. Sr.No. Name Amount Relationship PAN 1. Bharat C.Shah 18,000/- Brother AESPS2162M 2. Kiritbhai H.Talsania 18,000/- Brother in law ABWPT2317E 3. Abhishaben N.Shah 16,000/- Brother s wife AYHPS8641J Since these persons are assessed to tax and their identity is also established, accordingly appellant has proved identify, genuineness of the transactions and creditworthiness of the creditors in respect of these person .....

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ned, confirmation from these persons are already on record. Since amounts involved are small and these persons are intimately related with the appellant, it can be safely assumed that these amounts are accrued with these persons over a period of time. In this regard, the appellant has rightly placed reliance on Sunil Dua v/s. CIT (2011) 330 ITR 413(Del.) In view of the above facts, I am of the considered view that loans of ₹ 1,08,000/- from these persons should also be accepted. It will be .....

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been filed against this order. Therefore, after considering the totality of the facts of the case, we do not find any reason to interfere with the order of the ld.CIT(A), same is hereby upheld. Thus, ground No.2 of Revenue s appeal is rejected. As a result, Revenue s appeal is dismissed. 9. Now, we take up the Assessee s Cross Objection No.111/Ahd/2011 for AY 2006-07 (Arising out of ITA No.1226/Ahd/2011 for AY 2006-07 - by Revenue), wherein the assessee has raised the following grounds:- 1. The .....

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ash credit where the provisions of Sec. 44AF are applicable. 3. The Hon'ble CIT(A) has erred in law and on facts in not allowing loss in shares derivative transactions to the extent of ₹ 3,28,097/-. This is a pure business loss. The Hon'ble CIT(A) should not have disallowed the loss stating that the same was not claimed in return of income. The assessee can file and claim anything during the course of assessment proceedings as per view of Hon'ble P & H H.C. in the case of C .....

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