TMI Blog2016 (1) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... t on record, either by way of some kind of correspondence or communications between the parties or by way of ledger accounts of the parties. Once, the assessee is unable to discharge the primary onus cast upon him, then it is very difficult to reverse the finding of facts recorded by the AO as well as CIT(A). Under these facts, we uphold the order of the CIT(A) inasmuch as assessee has been unable to substantiate from the record that the liability in real sense is actually subsisting in this year and there is no cessation of liability. Thus, addition has rightly been made by and confirmed by the revenue authorities - Decided against assessee Addition u/s 69A on account of cash deposit made in the bank account - Held that:- The transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07-08 on following grounds of appeal :- 1. The ld. Commissioner of Income tax (Appeals) -30, Mumbai has erred in law in confirming the addition of ₹ 15,36,170/- made u/s 41(1) of the Income Tax Act, 1961 by the Assessing Officer without clearly looking into the merits of the appellants case. 2. The Ld. Assessing Officer Commissioner of Income tax (Appeals) -30, Mumbai has erred in law in confirming the addition of ₹ 18,41,027/- made u/s 69A of the Income Tax Act, 1961 by the Assessing Officer without appreciating the facts of the appellants case . 2. Brief facts qua the issue raised in ground no. 1 is that, assessee is engaged in the business of trading in Hosiery goods. In the Balance sheet as on 31st March, 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee s contention had been that remission of liability arises only when the creditor voluntarily gives up the claim; or debt had become barred by time; or the creditors would not be able to recover the amount by enforcing their rights in the Court. In support, certain decisions were also relied upon. The Ld. CIT(A), after considering the relevant finding given in the assessment order and the submissions made by the assessee, noted that assessee could not furnish any details or evidence whatsoever to show that there is an outstanding liability in the name of the sundry creditors as on the date of balance sheet. Further there is no business transaction from these parties and the liability is subsisting for more than 3 years. Therefore, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessment proceedings, the assessee was required to furnish addresses of the creditors and to file the confirmations which up till the stage of the Tribunal also, no such details or any evidence have been filed. Further, assessee was unable to corroborate or substantiate its explanation that assessee had returned the damaged goods to the creditors and for this reason alone the assessee has not made any payment to such parties. If there was some sort of dispute regarding return of goods and non-payment, then same could have been brought on record, either by way of some kind of correspondence or communications between the parties or by way of ledger accounts of the parties. Once, the assessee is unable to discharge the primary onus cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et profit of these deposits / sales should be added. The AO rejected the assessee s contention on the ground that assessee has not given any sufficient proof in support of the contention that the money deposited were actually business receipts. After detailed discussion, he added the entire amount of all credit deposits in the bank aggregating ₹ 18,41,027/-, which was added under the head income from other sources u/s 69A. 9. Before the CIT(A), the assessee submitted that, whenever, the cash was deposited, there were corresponding withdrawals also. The total cash of ₹ 10,65,555/- was made on 25 occasions and there were withdrawals of cash on 8 occasions for sums aggregating to ₹ 2,92,000/-. Thus, there was only cash d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are there reflecting some kind of transactions or business activities, then addition can only be made on account of estimated profit rate . 11. On the other hand, Ld. DR strongly relied upon the order of the CIT(A) and submitted that here in this case also, the onus which lied upon the assessee has not been discharged, therefore, addition should be confirmed. 12. We have considered the rival contentions and also perused the relevant material on record. It is an undisputed fact that bank account of Sangali Bank Ltd. had not been disclosed in the return of income or in the books of account. Perusal of such bank account revealed that assessee had made cash deposits and cheques deposits and also issued cheques and made withdrawals. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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