9911796707
TMI Blog2023 (5) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... remand report. (3) That the CIT(A) has erred in law and on facts by accepting the Revised Audit Report of the assessee dated 21-06-2016 furnished before him during the course of appeal proceedings. (4) That in view of the above grounds, the order of the Id. CIT(A) is perverse in law." 3. At the outset, it was pointed out that the solitary issue in the present appeal related to addition of cash deposited in the bank account of the assessee amounting to Rs.86.75 crores remaining unexplained, which was deleted entirely by the ld.CIT(A). 4. The facts leading to the addition being that the assessee was engaged in the business of trading in gold and silver on wholesale basis and during assessment proceedings it was found that there were cash deposits in its current account maintained with M/s.Prakashchand Jain Nagrik Sahakari Patsanstha Maryadit, Jalgoan, amounting to Rs.86.75 crores. On being asked to explain the same, the assessee contended that the entire cash deposits related to that received on account of cash sales made by the assessee to its customers in and around Jalgaon, of bullion sold . It was contended that the entire such sales had been duly reflected in its sales ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h deposits therein had been transferred to the AXIS bank account, the non consideration of the Bank account at Jalgaon did not have much impact on the financial statement of the assessee. The AO however did not accept this contention of the assessee, stating that none of the invoices showed sale of bullion to the customers of Jalgaon nor was there any delivery challan showing receipts by customers outside the Gujarat and in fact all the invoices produced showed the names of the customers from Gujarat only. He accordingly held that the assessee has failed to establish that the cash deposits in its books of accounts at Jalgaon related to the business transaction carried out from the Ahmedabad Office and he treated the entire cash deposits as unexplained money in terms of section 69A of the Act adding a sum of Rs.86.75 crores accordingly to the income of the assessee. 5. The matter was carried in appeal before the ld.CIT(A) where the assessee reiterated the contentions made before the AO and also filed a revised balance sheet incorporating the bank account at Jalgoan, as additional evidence before the ld.CIT(A). He further pointed out that after incorporating the bank account, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also gone through the order of the AO and the ld.CIT(A). 9. Before dealing on merits the grievance of the Revenue relating to the cash deposits in the bank account of the assessee in Jalgaon of Rs.86.75 Crs being treated as explained by the Ld.CIT(A), we shall first deal with the grounds raised by the department objecting to the admission by the Ld.CIT(A) of the additional evidences filed by the assessee, which are raised in ground nos.2 and 3 above. Admittedly, the only additional evidence filed by the assessee is revised balance sheet and profit& loss account incorporating the assessee's bank account in Jalgoan wherein the cash of Rs.86.75 crores was found deposited and which was not included in the financial statements furnished to the AO. 10. The findings of the ld.CIT(A) admitting the additional evidence, at para 5.1 of his order is as under: "5.1 The AO has objected to the admissibility of additional evidences on the ground that there was no sufficient cause which prevented the assessee to furnish the same evidences during the course of assessment proceedings. It has been submitted by the appellant that the bank account at Jalgaon was inadvertently not shown in his acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k account . 12. We agree with the Ld.CIT(A) that the assessee had adduced reasonable cause for not filing the revised financial statements during assessment proceedings . And accordingly, we hold, that the Ld.CIT(A) had rightly admitted the said additional evidence for adjudication. 13. Even otherwise, since admittedly all the transactions in the Jalgoan bank accounts were reflected in the AXIS bank account of the assessee which was accounted for in the books of the assessee, non-inclusion of Jalgoan bank account in its financial statements did not have any material consequence as such. Therefore, even if additional evidence in the form of revised balance sheet incorporating the Jalgoan Bank account were not admitted for adjudication, as per the AO's case also, it would not have any material difference to the factum of the cash deposits being explained or not. The AO in the remand report has categorically admitted that all the cash deposited in the Jalgaon bank are reflected in the AXIS Bank account, and that they stand explained and no adverse view be taken. Therefore, in our view, the ld.CIT(A) has rightly admitted additional evidences of the revised balance sheet submitted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dabad in AXIS bank and accounted for as sales in its books. The AO had verified all entries in remand proceedings and had given a finding that it completely tallied and also stated that no adverse view be taken. This factual finding of the ld.CIT(A), we find, is derived from remand report of the AO, contents of which have been reproduced above. The ld.DR has been unable to controvert the same before us. In view of the same, we see no reason to interfere in the order of the ld.CIT(A) deleting entire addition of Rs.86.75 crores, noting that the AO himself was satisfied that the cash deposited in the bank account at Jalgoan was reflected as sales in the books of the assessee. 16. Even otherwise we find that the AO in his remand report had accepted the assesses explanation for the entire cash deposits of Rs.86.75 Crs except that relating to cash deposits of Rs. 9.73 Crs. Therefore to the extent cash deposits were accepted by the AO as explained, of Rs.77.02(86.75 - 9.73),there can be no grievance of the Revenue now before us. 17. As for the cash deposits not accepted as explained by the AO, his contention we find is that the invoices of the sales made in Jalgaon produced by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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