TMI Blog2013 (11) TMI 1646X X X X Extracts X X X X X X X X Extracts X X X X ..... arise in the present appeal. Hence, the present appeal deserves to be dismissed and is accordingly dismissed. - TAX APPEAL NO. 899 of 2013 - - - Dated:- 19-11-2013 - MR.JUSTICE M.R. SHAH AND MR.JUSTICE R.P.DHOLARIA MR SUDHIR M MEHTA, ADVOCATE FOR THE APPELLANT JUDGEMENT M.R. Shah, J. 1. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Income Tax Appellate Tribunal (hereinafter referred to as the 'ITAT') dated 21.02.2013 passed in ITA No.1519/Ahd/2010 for the assessment year 2007-08, the revenue has preferred present appeal with the following proposed substantial questions of law: 2(A) Whether on the facts and circumstances of the case, the Hon'ble ITAT wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of S/B account with Amarnath Co. Op. Bank Ltd. On verification of the same, it was noticed by the Assessing Officer that the actual cash deposits in the S/B Account No.2831 was of ₹ 35,33,414/-. Therefore, another show cause notice was issued on 19.06.2009 requiring the assessee to explain the source of the said deposits with supporting evidence. The assessee tried to explain by submitting that the said bank account is HUF. The Assessing Officer was not satisfied with the explanation and therefore by passing the order of assessment he added the aforesaid amount of ₹ 35,33,414/- as a total income of the assessee by treating the income from undisclosed source. 3. Feeling aggrieved and dissatisfied with the assessment order, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed the finding of the Assessing Officer that the bank account in which the aforesaid amount was deposited was not the HUF account but it was the bank account of the assessee himself. However, by observing in paras 4.2 and 4.3, the learned CIT(A) has restricted the addition to the extent of ₹ 1.80 lacs by way of business income from retail trade of the assessee. Paras 4.2 and 4.3 reads thus: 4.2. I have gone through the asst. order passed by AO and the written submission filed by the appellant. I have also considered the evidence produced by the appellant in his paper book. I find considerable force in the contentions raised by AO that the transactions recorded in the bank a/c no. 2831 with Amarnath Co-op Bank Ltd. do not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut of cash deposited which is claimed by the appellant from the sale proceeds In this view of the matter, sales (credit) will precede the purchases (debit) in the bank account. The contention of the appellant is that the cash deposits have been made out of sale proceeds of retail trade and purchasers have been paid out of it at a later date. It after all depends upon the terms and conditions of the sale between the two parties. The appellant has rightly contended that the payment for the purchase could be at later date but the goods cannot be delivered or sold without making its purchases unless it is a forward transaction. The payment for the purchases may precede the sale or subsequent to it depending upon the terms and conditions between ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he bank a/c as undisclosed income is hereby restricted to ₹ 1.80 lacs but by way of business income from retail trade of the appellant. 8. The aforesaid finding has been confirmed by the learned ITAT by passing the impugned judgment and order and the order passed by the learned CIT(A) restricting the addition from ₹ 35,33,414/- to ₹ 1.80 lacs has been confirmed by the learned ITAT. 9. We are in complete agreement with the view taken by the learned CIT(A) as well as learned ITAT. The learned CIT(A) as well as learned ITAT have rightly held that the entire amount of ₹ 35,33,414/- cannot be added in the income of the assessee as undisclosed income. 10. Considering the evidence on record and the total turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X
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