TMI Blog2021 (9) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... ot available with the assessee as it has been spent by the assessee or has been invested and therefore was not available for deposits. In such a situation, without their being evidence to the contrary, we are of the view that the explanation of the assessee of the cash deposits being out of the withdrawals made earlier cannot be simply brushed aside. We therefore, direct the deletion of cash deposits of ₹ 2 lakh. - Decided in favour of assessee. Bogus purchases - assessee argued that the impugned purchase made from Aggarwal Canvas Co., the sales have been made and the sales have been accepted by the Revenue and in such a situation, no disallowance of purchases is called for - HELD THAT:- As assessee could not produce the copy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed his return of income for A.Y. 2011-12 on 31.02.2012 declaring total income at ₹ 35,54,050/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 28.03.2014 and the total income was determined at ₹ 61,54,330/-. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who vide order dated 31.03.2016 in Appeal No.130/14-15 granted partial relief to the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal before us and has raised the following grounds of appeal: 1. Whether the Ld. CIT(A) erred in confirming the addition of ₹ 10,70,000/-, being cash deposit in the saving bank account of assessee and his wife which was out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account. 5. AO noted that on the basis of AIR information, it was noticed that assessee had made cash deposit aggregating to ₹ 10,70,000/- in the bank account maintained with Bank of India. Assessee was asked to explain the source of cash deposits and furnish the cash flow statement. Assessee inter alia submitted that the bank account is a joint account maintained with his wife and that the deposits in the bank account were out of cash withdrawals made earlier from the bank account. The submissions of the assessee was not found acceptable to AO. He also did not accept the explanation of the assessee that the cash deposits were out of cash withdrawals made earlier due to the gap between the two dates of being almost one year and tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been spent, the submission of assessee explaining the source cannot be discarded and therefore no addition of the cash deposits could have been made by the AO. He therefore submitted that entire additions made by AO be deleted. 8. Learned DR on the other hand supported the order of lower authorities. 9. We have heard the rival submissions and perused the materials available on record. The issue in the present ground is with respect to the cash deposits of ₹ 10,70,000/- treated as undisclosed income. From the table of cash deposits which aggregated to ₹ 10,70,000/- of which the addition has been made by AO, it is seen that the cash deposits aggregating to ₹ 8,70,000/- was made in May/June 2009 and therefore did not fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd is with respect to the disallowance of ₹ 1,71,220/- made under the head of purchases. 11. During the course of assessment proceedings, assessee was asked to file the details of party-wise purchases. Assessee filed the details along with the bills which are tabulated by the AO in Para 6.2 of the order. The amount aggregated to ₹ 4,80,446/-. AO noted that assessee had not submitted any bill of ₹ 1,71,220/- in respect to the purchases made from Aggarwal Canvas Company. With respect to the other purchases, AO noted that the bills / vouchers are computer generated and therefore the authenticity and genuineness of those bills was hard to establish. He accordingly concluded that the bills were arranged to cover up the expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of purchases is called for. The aforesaid contention of the Learned AR has not been controverted by the Revenue. But at the same time, it is also a fact that assessee could not produce the copy of the purchase invoice of Aggarwal Canvas Co. before the CIT(A) nor has it been produced before us. It is also a fact that alternatively it is the contention of the Learned AR that the gross profit of the sales made from the impugned purchases could be added to the income. Before us, assessee has not placed any record to point out the gross profit earned by the assessee during the year. Considering the totality of the facts and also the fact that the appeal is of A.Y. 2011-12, we are of the view that ends of justice shall be met in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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