TMI Blog2018 (7) TMI 2039X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings has called for the information from the supplier, Mr.Vijay Kapoor, who has confirmed the sales to the assessee as well as receipt of the proceeds either in cash or bank deposits. From the above it is clear that both the purchases and sales were duly accounted in the books of accounts of the assessee as well as the supplier. Therefore, there were no unaccounted transactions and the entire transactions were accounted. That being so, we decline to interfere in the order passed by the ld. CIT(A) and his order on this issue is hereby upheld and the grounds raised by the Revenue is dismissed. - ITA No.1578/Kol/2016 (Assessment Year: 2011-12) - - - Dated:- 31-7-2018 - Shri S. S. Godara, JM Dr. A.L.Saini, AM Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kept on record but through the said reply M/s VijayKapoor had also claimed that the entire payments was made in cash by the assessee. Therefore, thepayments made to the said party located at the prime city of Delhi to whom he is familiar with asevidenced from providing credit facility was found to have made violationof provisions of section 40A(3) of theAct.In this regard the assessee was asked to explain the purchases in cash. In response, the assessee submitted that all the payments were made bydirect depositing cash to the bank account of M/s Vijay Kapoor (HUF). Therefore, the payments were very much made throughbanking channel only. As the turnover was cross verified, therefore, the very essence of thesection regarding moneylaunderi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the PNB to the credit of the suppliers accounttowards purchases amounting to ₹ 2,89,00,710/-.The AO during the assessment proceedings has called for the information from the supplier, Mr.Vijay Kapoor, who has confirmed the sales to the assessee as well as receipt of the proceeds either in cash or bank deposits, therefore, ld CIT(A) noted that there is no any tax evasion and hence deleted the addition. 5. Aggrieved by the order of the ld. CIT(A), the Revenue is in appeal before us. 6. The ld. DR for the Revenue has primarily reiterated the stand taken by the Assessing Officer which we have already noted in our earlier para and is not being repeated for the sake of brevity. On the other hand, the ld. Counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the payee also does not escape from the ambit of taxation on these receipts by directly depositing the cash in the bank account of the payee and this fact also not disputed by the Revenue. For that we rely on the judgment of the Coordinate Bench of ITAT, Kolkata, vide order dated 07.10.2015 in ITA No.67(Kol) of 2013 in the case of Rampada Panda v. I.T.O, Haldia wherein the similar facts were discussed and held as follows: We hold that since the genuinity of the payments made to the party is not doubted by the revenue, the provisions of section 40A(3) could not be made applicable to the facts of the instant case. It is observed that the assessee had taken enough precautions from his side to ensure that the payee also don' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed the sales to the assessee as well as receipt of the proceeds either in cash or bank deposits. Therefore, it is evidently clear that both the purchases and sales were duly accounted in the books of accounts of the assessee as well as the supplier. Therefore, there were no unaccounted transactions and the entire transactions were accounted and there is no tax avoidance in this case. For that, on the identical issue, we rely on the judgment of the Coordinate Bench of ITAT, Kolkata in ITA No.67(Kol) of 2013 (supra) wherein it was held that provisions of section 40A(3) should not be applied in genuine transactions and deleted the addition made by the Assessing Officer u/s 40A(3) of the Act. Similarly, Hon'ble Calcutta High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax on income earned out of such transactions and 2) To inculcate the banking habits amongst the business community. We note that the cash payments were accounted in the books of accounts of the supplier. The assessee also furnished the copy of the balance sheet wherein the PNB bank is reported in the assets side of the balance sheet. The AO during the assessment proceedings has called for the information from the supplier, Mr.Vijay Kapoor, who has confirmed the sales to the assessee as well as receipt of theproceeds either in cash or bank deposits. From the above it is clear that both the purchases and sales were duly accounted in the books of accounts of the assessee as well as the supplier. Therefore, there were no unaccounte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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