TMI Blog2018 (10) TMI 1033X X X X Extracts X X X X X X X X Extracts X X X X ..... d circumstances of the case, we are of the opinion that the assessee has failed to prove that he made un-accounted purchases. Therefore, his request for GP addition for unaccounted sales cannot be considered. In view of the above, this appeal filed by the assessee is dismissed. - ITA Nos. 84 And 85/VIZ/2018 - - - Dated:- 17-10-2018 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, HON BLE ACCOUNTANT MEMBER For The Assessee : Shri C. Subrahmanyam FCA. For The Department : Shri Waseem Rehman - Sr.DR ORDER PER V. DURGA RAO, JUDICIAL MEMBER These appeals by the assessee are directed against the separate orders of Commissioner of Income Tax (Appeals)-3, Visakhapatnam, both dated 13/02/2018 fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. On being questioned, the assessee has stated in his sworn statement that, out of ₹ 49,18,393/-, ₹ 25.00 lakhs has been received through cheque on 04/04/2012 and the same is duly reflected in the books of account on 05/04/2012. He further stated that he never received cash, in respect of balance amount of ₹ 24,18,393/-, however, the signature on the page No.60 is appended by him only, and confirmed that the signature is of him. The assessee also submitted before the Assessing Officer that purchases relating to unrecorded sales have not been recorded in the books of account because sometimes, private customers approaches him for purchase of timber to building houses/flats, do not want to pay sales tax and insist him for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ails in respect of unaccounted purchases, from whom it is purchased. The assessee also failed to prove that purchases were made on credit basis and paid the suppliers after sales are made and therefore there is no explanation for the source of unaccounted purchases. Accordingly, the Assessing Officer has made the addition of ₹ 49,18,393/-. 3. On appeal, ld. CIT(A) confirmed the order of the Assessing Officer to the extent of ₹ 24,18,393/- and granted relief to the extent of ₹ 25.00 lakhs received by the assessee through cheque. For the sake of convenient, the relevant portion of the ld.CIT(A) s order is extracted as under:- 4.4) I have carefully considered the arguments of the appellant and also the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant and the appellant categorically admitted in his statement that the cash part of the sales was not reflected in the books. It is a tax audit case u/s.44AB of the Act. The due date for filing of return of income is 30.10.2012. The search operation u/s.132 was conducted on 17.02.2013. It is not known whether the return of income was originally filed or not. But the return of income for notice issued u/s.153C was filed on 26.08.2015. It is also an undisputed fact that the appellant has reflected ₹ 25,00,000/- in his books but the Assessing Officer has denied the credit for this amount on the presumption that cheque payment is referring to the future supplies. The Assessing Officer has not adduced any evidence on his presumption. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d both the sides, perused the material available on record and orders of the authorities below. 8. The assessee is an individual carrying in the business of retail trading of timber / furniture wood. There is a search and seizure operations carried out in the group cases of M/s. Sri Lakshmi Constructions on 17/12/2013 and certain incriminating material belonged to the assessee was found in respect of material supplied by the assessee to M/s. Sri Lakshmi Constructions. In the assessment order, the Assessing Officer noted that incriminating material seized as per page No. 60 of Annexure-A/SLC/01 in respect of sales of 49,18,393/- made to M/s. Sri Lakshmi Constructions, out of which, an amount of ₹ 25.00 lakhs was paid through cheque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suppliers. The assessee is not able to explain the details of unexplained purchases, quantity of the purchases and also the details of unaccounted sales and source for the unrecorded purchases. Under these facts and circumstances of the case, we are of the opinion that the assessee has failed to prove that he made un-accounted purchases. Therefore, his request for GP addition for unaccounted sales cannot be considered. In view of the above, this appeal filed by the assessee is dismissed. ITA 85/VIZ/2018 9. The facts of this case are similar to the facts involved in ITA No. 84/VIZ/2018, but only difference is in figures. In this case the addition is of ₹ 9,31,737/- in respect of unaccounted sales, the assessee has given sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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