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The ACIT, Central circle, Alwar Versus M/s Kali Metal Pvt. Ltd. (formerly Lakshay Farms and Orchard Pvt. Ltd)

2016 (8) TMI 914 - ITAT JAIPUR

Allowance of telescoping of debit entries (payments) against addition made on account of unexplained receipts (credits) - Held that:- CIT(A) has given a categorical finding that the debit side entry dated 09.03.2008 for ₹ 15 lacs is of similar narration being “cash amount transferred, Pradeep, Sanjay Goyal, cons by Ashishji.” Even name is mentioned i.e. Sanjay Goyal, Ashishji Goyal are also common. The said findings remain uncontroverted. In light of that, ld CIT(A) has rightly held that w .....

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ermination of undisclosed income ₹ 81,73,000/- is based on P&L account and balance sheet of same period. It is not only the case that the profit of ₹ 81,73,000/- is reflected or detected by way of any independent source of any other undisclosed income. Therefore the income already detected and taxed in the same A.Y. should be given credit in as much as otherwise it will tantamount to double taxation. The said finding remains uncontroverted before us. Further, the Coordinate Bench in .....

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Poddar, Advo For The Revenue :Shri M.s. Meena (CIT) ORDER PER SHRI VIKRAM SINGH YADAV, A.M. This is an appeal filed by the Revenue against the order of Ld. CIT(A), Central, Jaipur dated 15.02.20132 wherein the Revenue has taken following ground of appeal: On the facts and in the circumstances of the case the ld. CIT(A), Central, Jaipur has erred in allowing telescoping of debit entries (payments) of ₹ 15,00,000/- against addition made on account of unexplained receipts (credits) of ₹ .....

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d 28.02.2014 and therein the Revenue has submitted that it has not filed any appeal against the relief of ₹ 15 lacs granted to the assessee. In light of that, the Ld. AR submitted that the subject appeal should be dismissed in view of the said submission made by the ld. CIT(DR). After hearing both the parties and going through the order of the Coordinate Bench, it is noted that the issue before the Coordinate Bench was in respect of addition of ₹ 33,86,000 sustained by the ld CIT(A) .....

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en the facts on record suggest that the subject appeal has been filed by the Revenue on 2.5.2013. In our view, the statement of ld CIT(DR) is apparently made out of ignorance and the same cannot form the basis for denial of filing an appeal or nonadmittance thereof. In light of that and after hearing both the parties, it was decided to hear the Revenue appeal on merits as well as to consider the decision of the Co-ordinate Bench where all the similar issues stand adjudicated by the Coordinate Be .....

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nd such seized documents are in the form of ledger account which is titled as Wig Brothers. There is no dispute that the documents contained dates specific cash entries with specific narration. It is also admitted fact that such cash transactions are no verifiable from the books of accounts. The objection of the appellant is that these papers can hardly be said to be belonging to the appellant as also that at the most on the basis of turnover recorded on such paper by way of amount invested in b .....

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se pertain to the appellant and that the transactions recorded on such documents are correct. Moreover such transactions are not vague or unspecific and therefore the objection of the appellant that the transaction cannot be relatable to the assessee cannot be accepted. Further regarding the contention of the appellant that entry dated 05.03.2008 is nowhere in the seized document it may be stated that such entry is dated 03.03.2008 with the narration amount transferred - Mahesh Khan DOI CONS by .....

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n. The debit side entry dated 09.03.2008 for ₹ 15 lacs is of similar narration being cash amount transferred, Pradeep, Sanjay Goyal, cons by Ashishji. Even name is mentioned i.e. Sanjay Goyal, Ashishji Goyal are also common. Therefore the benefit on account of such cash entry appearing on debit side is to be given to the assessee. In fact allowing such benefit will only give telescopic benefit to the appellant in as much as it reflect only rotation of the same money in the same period. Kee .....

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. Sanjay Goyal, Ashishji Goyal are also common. The said findings remain uncontroverted. In light of that, ld CIT(A) has rightly held that where the credit side cash entries have already been taxed then in that case the debit side cash entries have to be telescoped and he has accordingly given relief of ₹ 15 lacs. We accordingly donot see any infirmity in the order of ld CIT(A) in the said finding and the same is hereby confirmed. Hence, ground of Revenue is dismissed. 2.3 Regarding Ground .....

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the basis of incriminating documents as per pages 59,60 & 61 of Ammex- A-5 the AO has made addition of ₹ 48,86,000/-. This addition is mainly based on the basis of cash received on several occasions on different dates in F.Y. 2007-08 i.e. A.Y. under consideration. Such cash is mainly received during the month of February and March, 2008 and such receipts of cash has been considered as undisclosed income. In the same period payment of ₹ 15 lacs is also evidenced and therefore whil .....

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isclosed nature and therefore the undisclosed income evidenced on the basis of seized document pages 59,60 & 61 of Annx. A-5 should be the part of P&L account and balance sheet of same period. Both the transactions are of the same period and the determination of undisclosed income ₹ 81,73,000/- is based on P&L account and balance sheet of same period. It is not only the case that the profit of ₹ 81,73,000/- is reflected or detected by way of any independent source of any .....

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o sustained addition of ₹ 47,87,000 was before the Coordinate Bench in the appellant s appeal and the relevant findings are as under: 11. After going through the entire relevant pages, we have found that the submission of the ld. DR is correct. The net undisclosed profit remain only at ₹ 33,84,752/- (Rs. 2,86,35,752 - 2,52,51,000) as against ₹ 47,87,000/- sustained by the ld. CIT(A). Having arrived at the conclusion as above we have noticed that the perusal of the aforesaid pap .....

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e by the Auditor (CA). Copy of the audit report is enclosed at paper book 7 to 23. Rather the AO has himself accepted the books of account. Therefore, we find force in the submission of ld. DR and that without rejection of books of account no such addition in the trading account only on the basis of retracted admission is justified. The assessee can legally retreat his statement of admission and disprove the same with the help of the evidence. The assessee has not only retracted from his admissi .....

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