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TMI Blog2017 (11) TMI 1345X X X X Extracts X X X X X X X X Extracts X X X X ..... nk of India which the assessee does not wish to press and, therefore, it stands dismissed. 3. Coming to the next component in ground no. 1, which is against the disallowance of labour charges of Rs. 1,08,799/-. Brief facts of the case are that assessee is in the business of book binding for the Govt. of West Bengal undertaking M/s. Saraswati Press Ltd. The assessee runs the business of book binding under the name and style of M/s. Shiva Shakti Binders. The assessee undertook a job work for Rs. 49.68 lacs out of which job valuing Rs. 11,52,105/- was debited under the head 'outside labour charges'. The AO observed that out of the said payment of Rs. 11,52,105/-, an amount of Rs. 10,87,985/- was paid to the outside labourers. The AO acknowled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o M/s. Sarada Enterprise. The assessee through Shiva Shakti Binders had advanced from 07.04.2007 to 11.03.2008 a total amount of Rs. 18,24,189 to M/s. Sarada Enterprise. The Ld. AR drew our attention to pages 12 and 13 of the paper book from which this fact is evident and page no. 13 reveals that an amount of Rs. 11,52,105/- was disbursed as labour charges and Rs. 6,72,084/- was the balance amount. In order to prove the veracity of the claim of disbursement of labour charges, the AO had asked the assessee to produce some of the labourers and the AO acknowledges the fact that the assessee had in fact produced some labourers before him. According to the AO, certain bills were not signed and the payments were made mostly in cash, therefore, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank of India. According to AO, since the Ld. AR of the assessee failed to explain the cash deposit, he treated the same as undisclosed income and added the same to the returned income of the assessee. Aggrieved, the assessee preferred an appeal before the ld. CIT(A), who was pleased to confirm the same and dismissed the appeal of the assessee. Aggrieved, the assessee is before us. 6. We have heard rival submissions and gone through facts and circumstances of the case. As we had earlier noted that the assessee is a book binder and used to perform the task in the name and style of M/s. Shiv Sakti Binders from the premise of M/s. Saraswati Press Ltd. However, during this year, since there was an increase in workload, the assessee started anot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the transaction between the assessee and Baral Jewellery House, 275, Vivekananda Road, Kolkata-700 006. We note that the AO found fault after examination of these bills. According to AO, from a perusal of the bills he observed that the number on the bill as No. BJH-92 on 05.04.2007 and it was in order upto bill No. BJH-100 dated 30.06.2007. However, the AO notes that the subsequent bills dated 16.08.2007 bearing bill no. BJH-31 and so on upto last bill dated 16.09.2007 he found discrepancy. Thus, according to AO, though he found bills to be in order from Bill No. BJH-92 dated 15.04.2007 to Bill No. BJH-100 dated 30.06.2007, the discrepancy which AO noted was that when the number was 100 how come again bill number could be 31 onwards which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised suspicion in the mind of Ld. CIT(A) which led him not to accept the claim of the assessee when the assessee had produced the bills which dates from 05.04.2007 to 15.09.2007. The AO found fault on the fact that the assessee has sold gold not at the beginning of the business whereas we note that the assessee has in fact started selling the gold from 05.04.2007 i.e. from the April, 2007 upto 16.09.2007 thus raising an amount of Rs. 2.02,199/- which cannot be disbelieved only on the basis of surmises and conjecture when the fact of the matter is that bills evidencing sale of gold was in fact produced before the lower authorities. In case the AO/CIT(A) was of the opinion that bills were bogus they were free to summon the jewellery shop owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash balance as on 07.02.2008 is Rs. 28,984/-. Cash received from 07.02.2008 to 06.03.2008 is Rs. 3,77,884/- which is evident from pages 25 to 26 thus, cash in hand as on 06.03.2008 was Rs. 4,06,868/- (Rs.28,984/- + Rs. 3,77,884/-). After depositing cash on 06.03.2008 of Rs. 4 lacs assessee's cash balance is Rs. 6,868/-. The cash flow statement of the assessee is reproduced as under: Bhikari Chandra Pradhan Assessment Year: 2008-09 I.T. Appeal No. 574/Kol/2015 CASH FLOW STATEMENT Cash Balance as on 01.02.2008 Rs. 5,34,484/- Cash received from 02.02.2008 to 06.02.2008 Rs. 94,500/- Rs. 6,28,984/- Cash deposited in Union Bank of India on 1.2.2008 Rs.5000/- on7.2.2008 Rs. 600000/- Rs. 6,05,000/- Cash Balance as on 7.2.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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