TMI Blog2019 (10) TMI 1404X X X X Extracts X X X X X X X X Extracts X X X X ..... /03/2016 then the amount received by the assessee through banking channel out of the said cash deposited in the bank account of M/s Shree Radha Commodities Services cannot be considered as unexplained or non genuine in the hands of the assessee. We therefore do not see any valid ground to interfere with the findings given by the Ld. CIT(A). - ITA NO. 728/Chd/2018, Cross Objection No. 43/Chd/2018 (In ITA NO. 728/Chd/2018) - - - Dated:- 3-10-2019 - SHRI. N.K.SAINI, VP And SHRI , SANJAY GARG, JM For the Assessee : Shri Sudhir Sehgal, Advocate For the Revenue : Shri Ritesh Parmar, Sr. DR ORDER PER N.K. SAINI, VICE PRESIDENT The appeal by the Department and Cross Objection filed by the Assessee are directed against the order dt. 07/03/2018 of Ld. CIT(A)-2, Ludhiana. 2. In the present appeal Department has raised the following grounds: i. Whether on the facts and circumstances of the case and in law. The CIT(A) was justified in deleting the addition of ₹ 2,26,30,000/- whereas the assessee failed to explain the same to the satisfaction of the assessing officer particularly the credit worthiness of M/s Shree Radha Commodity Services to the extent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ences to prove the source of net credit of ₹ 2,26,30,000/- in the books of account of the assessee: i) Books of account of M/s Shree Radha Commodity Services for the Asstt. Year 2008-09. ii) Account Statement of bank account of M/s Shree Radha Commodity Services wherefrom funds are transferred to the assessee. iii) Complete evidence of source of each corresponding cash deposit in the bank account of M/s Shree Radha Commodity Services out of which funds were transferred to the assessee. 5.1 In response the assessee submitted as under: 1. Sh. Kaushal Gupta is Prop, of M/s Shree Radha Commodity Services in Individual capacity and is partner in M/s Swaran Fasteners in HUF capacity, hence the question raised in your questionnaire contradicts and your goodself has no power to ask any question in individual capacity. Further it is a case of firm and confirmation from M/s Shree Radha Commodities is attached. 2. You have also given in the questionnaire to produce the books of M/s Shree Radha Commodity Services. Please note you have no power to call for the books of the said case. 3. The question on loan and advances in the case of assessee in individual capa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Radha Commodities Services has deposited the cash in its bank account out of available cash in hand in its books of account. It has again been submitted that the assessments in the case of the assessee firm for the A.Y. 2010-11 and A.Y. 2012-13 were completed under section 143(3) of the Act but no such addition was made under identical facts and in the circumstances of the case although the amount taken in these years from M s Shri Radha Commodities Services were at ₹ 5,63,81,000/- and ₹ 7,56,81,000/respectively which far exceeds the amount taken during the year under consideration. In support of his above contentions, the assessee firm has also filed copies of assessment for theses years along with audited balance sheets, ledger accounts of M/s Shree Radha Commodities Services and tax audit report for the A.Ys. 2010-11 and 2012-13. It has again been submitted that the transactions in the case of M/s Shree Radha Commodities Services are mostly in cash due to its nature of business and whatever cash has been received by the assessee firm whose proprietor is Mr. Kaushal Gupta is being deposited into bank and the bank account is duly being operated in accordance with law. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer came to this conclusion after verifying the books of account although on test check basis. It has again been submitted that the reassessment proceedings for the A.Y. 2009-10 in the case of M/s Shree Radha Commodities Services were dropped although the assessment for this year was also reopened on the basis of identical facts/reasons. It has again been submitted that the reassessment proceedings for the A.Y. 2009-10 in the case of the assessee firm were also dropped although the assessment for this year was also reopened on the basis of identical facts/reasons. On careful consideration of the rival contentions, I find lot of force in the contentions of the learned AR of the assessee firm more particularly when the assessment in the case of M/s Shree Radha Commodities Services for the same assessment year has been completed under section 143(3) read with section 147 of the Act on same date although by a different Assessing Officer. The Assessing Officer has also absolutely failed to bring any material on record to suggest that the cash deposits in the bank account of M/s Shree Radha Commodities Services infact represent unaccounted income of the assessee firm. The Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank account of M/s Shree Radha Commodities Services from whom the assessee had received the impugned amount during the year under consideration. The explanation of the assessee before the Ld. CIT(A) was that the confirmed copy of the account of M/s Shree Radha Commodities Services whose proprietor is Shri Kaushal Gupta a family member of the partners of the assessee firm was furnished to the A.O. and that the transactions in the case of M/s Shree Radha Commodities Services were mostly in cash due to its nature of business, whenever the cash was received by the said firm it was deposited in its bank account and out of the deposits in the bank account, amount had been transferred to the assessee firm through banking channel. In the instant case, the Ld. CIT(A) categorically stated that for the A.Y. under consideration assessment in the case of M/s Shree Radha Commodities Services was reopened under section 147 of the Act under identical facts and the reassessment was completed under section 143(3) read with section 147 of the Act vide order dt. 23/03/2016, however no addition on account of cash deposits were made and the A.O. came to the conclusion after verifying the books of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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