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TMI Blog2023 (4) TMI 950X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case is that assessee filed his return of Income for assessment year 2011-12 on 24/9/2011 declaring a total Income of Rs. 3,01,310/-. The assessee is engaged in the business of retailing of liquor for human consumption. The case of the assessee was also selected through computer aided scrutiny system (CASS). During the course of assessment proceedings, the learned assessing officer Issued questionnaires which were replied to by the assessee. The net profit earned by assessee was examined and the addition on the lump-sum basis was made to the total income of the assessee, as assessee could not furnish the details of item wise sale of bottle etc. Further only vouchers of total sales of the day have been prepared and stated that the win ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 40a(3) of the income tax act which was not properly explained before the assessing officer and therefore that issue was also required to be set-aside as the assessment being erroneous and prejudicial to the interest of the revenue. Thus, the assessment order passed in the case of assessee was set-aside to be made afresh on the issue of purchase of Rs. 131.24 lakhs in case in violation of section 40A(3) of the income tax Act and for verification of the source of case deposit of Rs. 103.94 lakhs in savings bank account maintained with the Jammu and Kashmir Bank, Panipat branch which remained unexplained. The assessee challenged the order dated 27.10.2015 before ITAT, which was allowed on 20.12.2018 and hence the present appeal has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year. Complete books of accounts were also required along with the bills, vouchers, stock registers, and other relevant records maintained by the assessee for the year. The AO further asked month wise details of purchases and sales made during the year. As per letter placed at page number 18 of the paper book the assessee submitted the copy of the bank account to the assessing officer. Further vide a letter assessee explained regarding sales and cash deposit in bank accounts submitting that the assessee is holding license and selling liquor for human consumption to retail customers. The products were delivered as a mint, half bottles/BS etcetera whereas the sale price ranges from Rs. 50 to Rs. 1000 depending upon the quantity of liquor. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... source of cash deposit. According to us on this account. The order of the learned Commissioner of Income tax passed under section 263 of the Income tax act is not sustainable. 9. On the 2nd Issue the learned CIT has held that the AO has failed to verify the cash payment made for purchase of goods which are not in conformity with the provisions of section 40A(3) of the Income tax act. It is apparent from the audit objection filed before us at page number 30 of the paper book that the case of the assessee was selected for the scrutiny to verify only the cash deposit in the bank account of the assessee. the issue before us is whether assessing officer has made any enquiry with respect to the above purchases. Though, learned assessing office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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