TMI Blog2010 (4) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... hich read as under : 1. For that the Ld. CIT (A) erred in dismissing the appeal of the appellant on the alleged grounds. 2. For that the Ld. CIT (A) having confirmed the rejection of accounts, additions u/s 40A (3) and 68 could not be validly made and in the result the additions of ₹ 14,98,573/- ₹ 11,80,151/- deserve to be deleted. 3. For that without prejudice to the above, the Ld. CIT (A) erred in confirming addition of ₹ 14,98,573/- made by the A.O. u/s 40A (3) of the Income Tax Act, 1961 on the alleged grounds. 4. For that without prejudice to the above, the addition of ₹ 11,80,151/- u/S 68 of the Income Tax Act, 1961 is wrong and uncalled for. 5. For that further grounds of appeal may kindly be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s order as ₹ 1,49,814) u/s.40A(3) is justified. We, therefore, uphold the impugned orders of the authorities below and dismiss the ground taken by the assessee in this regard. 6. As regards the addition of 11,80,151 made by the Assessing Officer u/s.68 of the Act and confirmed by the learned CIT(A), the relevant facts are that on examination of cash book and sales invoices vis-a-vis confirmation of transaction received from Palco Automobiles, the Assessing Officer noticed that date and amount of payments made to it as well as date and proceeds of sales as mentioned in the books were not tallying fully with those mentioned in the sales invoices. On recasting the cash book, the Assessing Officer found that on various date cash disbur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lain the negative cash balance as observed by the Assessing Officer and the details of which are given on pages 3 and 4 of the assessment order. However, we are of the considered view that the addition of the amount of negative balance made by the Assessing Officer aggregating ₹ 11,80,150.52 u/s.68 of the Act is not justified. Considering the facts, we are of the considered view that it will be justifiable to take the peak of the negative balance as unexplained cash credit. On perusal of the details as given by the Assessing Officer on pages 3 and 4 of the assessment order, the peak of negative balance of 14.3.2004 is ₹ 1,54,475. We hold that the said amount of ₹ 1,54,475 should be treated as unexplained cash credit as per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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