M/s Swaran Fastners, Ludhiana V. ITO, W-4(2), Ludhiana

CO 43/CHANDI/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5448 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 03-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 06-09-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RITESH PARMAR SR DR
• Keywords: Income from undisclosed sources; Peak credit; Onus to prove; Reassessment proceedings; Set aside
• Section: 143(3); 143(1); 147; 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH B, CHANDIGARH .., ! '# #$ %, & '( BEFORE: SHRI. N.K.SAINI, VP & SHRI , SANJAY GARG, J M ITA NO. 728/CHD/2018 ASSESSMENT YEAR : 2008-09 THE ITO WARD 4-(2) RISHI NAGAR, LUDHIANA PUNJAB M/S SWARAN FASTNERS SHOP NO. 3, SHIV MARKET, SATSANG ROAD LUDHIANA, PUNJAB PAN NO: AADFS3860R APPELLANT RESPONDENT CROSS OBJECTION NO. 43/CHD/2018 (IN ITA NO. 728/CHD/2018) ASSESSMENT YEAR : 2008-09 M/S SWARAN FASTNERS SHOP NO. 3, SHIV MARKET, SATSANG ROAD LUDHIANA, PUNJAB THE ITO WARD 4-(2) RISHI NAGAR, LUDHIANA PUNJAB PAN NO: AADFS3860R APPELLANT RESPONDENT !' ASSESSEE BY : SHRI SUDHIR SEHGAL, ADVOCATE #!' REVENUE BY : SHRI RITESH PARMAR, SR. DR $ %! & DATE OF HEARING : 23/09/2019 '()*! & DATE OF PRONOUNCEMENT : 03/10/2019 ')/ ORDER PER N.K. SAINI, VICE PRESIDENT THE APPEAL BY THE DEPARTMENT AND CROSS OBJECTION FI LED 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: 2 I. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW. THE CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION OF RS . 2,26,30,000/- WHEREAS THE ASSESSEE FAILED TO EXPLAIN THE SAME TO THE SATISFA CTION OF THE ASSESSING OFFICER PARTICULARLY THE CREDIT WORTHINESS OF M/S SHREE RAD HA COMMODITY SERVICES TO THE EXTENT OF RS. 2,26,30,000/-. II. THAT THE ORDER OF THE CIT(A) ON THE ABOVE ISSUE RAI SED IN THIS APPEAL BE SET ASIDE AND THAT OF THE ASSESSING OFFICER BE RESORTED TO. III. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUNDS OF APPEAL BEFORE IT IS FINALLY DISPOSED OFF. 3. THE ONLY GRIEVANCE OF THE DEPARTMENT IN THIS APP EAL RELATES TO THE DELETION OF ADDITION OF RS. 2,26,30,000/- MADE BY T HE A.O. ON ACCOUNT OF CASH CREDIT RECEIVED FROM M/S SHREE RADHA COMMODITY SERV ICES. 4. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE WAS DOING BUSINESS OF TRADING IN IRON AND STEEL AND FILED THE RETURN OF I NCOME ON 13/10/2008 DECLARING AN INCOME OF RS. 2,07,240/- WHICH WAS PROCESSED UND ER SECTION 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS A CT). LATER ON, THE A.O. RECEIVED AN INFORMATION FROM INVESTIGATION WING THA T THERE WAS CASH DEPOSITED IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES, OUT OF THAT FUNDS WERE BEING TRANSFERRED IN THE ACCOUNT OF THE ASSESSEE FIRM. THE A.O. OBSERVED THAT THE COPY OF ACCOUNT OF M/S SHREE RADH A COMMODITIES SERVICES, IN THE BOOKS OF ACCOUNT OF THE ASSESSEE REVEALED TH AT DURING THE FINANCIAL YEAR 2007-08 RELEVANT TO ASSESSMENT YEAR UNDER CONSIDERA TION, PEAK CREDITS OF RS. 2,26,30,000/- AS ON 31/01/2008 WERE GIVEN TO THE AS SESSEE WHO FAILED TO PRODUCE EVIDENCES TO PROVE THE SOURCE OF CASH DEPOSITS MADE IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES WHERE FROM CHE QUES WERE ISSUED TO THE ASSESSEE FOR PEAK CREDIT OF RS. 2,26,30,000/-. ON T HE BASIS OF THE AFORESAID INFORMATION RECEIVED FROM THE INVESTIGATION WING TH E A.O. ISSUED NOTICE UNDER SECTION 148 OF THE ACT. IN RESPONSE THE ASSESSEE FI LED THE COPY OF THE INCOME TAX RETURN V OF ORIGINAL RETURN, ON 28/04/2015 WITH THE NOTING RETURN FILED U/S 148. 3 5. DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE A.O. OBSERVED THAT M/S SHREE RADHA COMMODITIES SERVICES DEPOSITED CASH OUT OF WHICH CHEQUES WERE ISSUED TO THE ASSESSEE AND THAT THE COPY OF THE BAN K ACCOUNT IN CITY BANK REVEALED THAT BEFORE ISSUING EACH CHEQUE TO THE ASS ESSEE, CASH WAS DEPOSITED IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES. THE A.O. REPRODUCED THE DETAILS OF THE CASH DEPOSITS AT PAGE NO. 7 TO 10 OF THE ASSESSMENT ORDER, FOR THE COST OF REPETITION, THE S AME IS NOT REPRODUCED HEREIN. THE A.O. ASKED THE ASSESSEE TO PRODUCE FOLLOWING EV IDENCES TO PROVE THE SOURCE OF NET CREDIT OF RS. 2,26,30,000/- IN THE BO OKS OF ACCOUNT OF THE ASSESSEE: I) BOOKS OF ACCOUNT OF M/S SHREE RADHA COMMODITY SERVI CES FOR THE ASSTT. YEAR 2008-09. II) ACCOUNT STATEMENT OF BANK ACCOUNT OF M/S SHREE RADH A COMMODITY SERVICES WHEREFROM FUNDS ARE TRANSFERRED TO THE ASSESSEE. III) COMPLETE EVIDENCE OF SOURCE OF EACH CORRESPOND ING CASH DEPOSIT IN THE BANK ACCOUNT OF M/S SHREE RADHA COMM ODITY 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 COMM ODITY SERVICES IN INDIVIDUAL CAPACITY AND IS PARTNER IN M/S SWARAN FA STENERS IN HUF CAPACITY, HENCE THE QUESTION RAISED IN YOUR QUESTIONNAIRE CON TRADICTS AND YOUR GOODSELF HAS NO POWER TO ASK ANY QUESTION IN INDIVIDUAL CAPA CITY. FURTHER IT IS A CASE OF FIRM AND CONFIRMATION FROM M/S SHREE RADHA COMMODITIES I S 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 P OWER TO CALL FOR THE BOOKS OF THE SAID CASE. 3. THE QUESTION ON LOAN AND ADVANCES IN THE CASE OF AS SESSEE IN INDIVIDUAL CAPACITY IS NOT APPLICABLE. 6. THE A.O. AFTER CONSIDERING THE AFORESAID REPLY O F THE ASSESSEE OBSERVED THAT THE ASSESSEE HAD FAILED TO DISCHARGE ITS ONUS TO PROVE THE SOURCE OF CREDIT 4 OF RS. 2,26,30,000/- IN ITS BOOKS OF ACCOUNT. HE TH EREFORE MADE THE ADDITION OF THE AFORESAID AMOUNT. 7. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO DELETED THE ADDITION BY OBSERVING IN PARA 6.2 OF TH E IMPUGNED ORDER AS UNDER: 6.2 I HAVE CONSIDERED THE OBSERVATIONS OF THE ASSES SING OFFICER AS MADE BY HIM/HER IN THE ASSESSMENT ORDER WHILE MAKING THE IM PUGNED ADDITION. I HAVE ALSO CONSIDERED WRITTEN SUBMISSIONS FILED BY THE ASSESSE E FIRM THROUGH ITS LEARNED AR VIDE LETTER DATED 02.02.2018 ON THE ISSUE UNDER REF ERENCE. I HAVE FURTHER CONSIDERED VARIOUS JUDICIAL PRONOUNCEMENTS RELIED U PON BY THE LEARNED AR OF THE ASSESSEE FIRM AS WELL AS OTHER MATERIAL PLACED BY H IM ON RECORD. ON CAREFUL CONSIDERATION OF THE ASSESSMENT ORDER, IT HAS BEEN NOTICED THAT THE ASSESSING OFFICER HAS MADE THE IMPUGNED ADDITION AS THE ASSESS EE FIRM IN THE OPINION OF THE ASSESSING OFFICER COULD NOT EXPLAIN THE SOURCE O F CASH DEPOSITS IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES, A SISTER CONCERN OF THE ASSESSEE FIRM FROM WHOM IT HAS RECEIVED HUGE AMOUNT DURING THE YEAR UNDER CONSIDERATION. ANOTHER REASON FOR MAKING THE IMPUGN ED ADDITION WAS THAT THE ASSESSEE FIRM HAS EVEN FAILED TO PRODUCE BOOKS OF A CCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES FOR HIS VERIFICATION. ON THE OT HER HAND, THE LEARNED AR OF THE ASSESSEE FIRM HAS SUBMITTED THAT THE ASSESSEE F IRM HAS PROVIDED CONFIRMED COPY OF ACCOUNT OF M/S SHREE RADHA COMMODITIES SERV ICES WHOSE PROPRIETOR IS SH. KAUSHAL GUPTA, A FAMILY MEMBER OF THE PARTNERS, SHOWING THE COMPLETE ADDRESS AND PAN NO. OF THE ASSESSEE FIRM ALONG WITH BANK STATEMENTS OF THE ASSESSEE FIRM AS WELL AS THAT OF M/S SHREE RADHA CO MMODITIES SERVICES FOR VERIFICATION OF THE ASSESSING OFFICER. MANY INACCURA CIES WERE ALSO POINTED OUT BY THE LEARNED AR OF THE ASSESSEE FIRM IN THE ASSESSME NT ORDER. IT HAS AGAIN BEEN SUBMITTED THAT THE ASSESSING OFFICER HAS CONSIDERED ONLY THOSE CHEQUE AMOUNTS WHICH HAVE BEEN GIVEN AFTER DEPOSITING CASH IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES AND NOT ALL THE AMOUNTS WHICH HAVE BEEN TRANSFERRED THROUGH CHEQUE BY M/S SHREE RADHA COMMO DITIES SERVICES. IT HAS AGAIN BEEN SUBMITTED THAT M/S SHREE RADHA COMMODITI ES SERVICES HAS DEPOSITED THE CASH IN ITS BANK ACCOUNT OUT OF AVAIL ABLE CASH IN HAND IN ITS BOOKS OF ACCOUNT. IT HAS AGAIN BEEN SUBMITTED THAT THE AS SESSMENTS 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 UND ER 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 RS.5,63,81, 000/- AND RS.7,56,81,000/- RESPECTIVELY WHICH FAR EXCEEDS THE AMOUNT TAKEN DUR ING THE YEAR UNDER CONSIDERATION. IN SUPPORT OF HIS ABOVE CONTENTIONS, THE ASSESSEE FIRM HAS ALSO FILED COPIES OF ASSESSMENT FOR THESES YEARS ALONG WITH AU DITED BALANCE SHEETS, LEDGER ACCOUNTS OF M/S SHREE RADHA COMMODITIES SERVICES AN D TAX AUDIT REPORT FOR THE A.YS. 2010-11 AND 2012-13. IT HAS AGAIN BEEN SUBMIT TED THAT THE TRANSACTIONS IN THE CASE OF M/S SHREE RADHA COMMODITIES SERVICES AR E MOSTLY IN CASH DUE TO ITS NATURE OF BUSINESS AND WHATEVER CASH HAS BEEN RECEI VED BY THE ASSESSEE FIRM WHOSE PROPRIETOR IS MR. KAUSHAL GUPTA IS BEING DEPO SITED INTO BANK AND THE BANK ACCOUNT IS DULY BEING OPERATED IN ACCORDANCE WITH L AW. IT HAS AGAIN BEEN SUBMITTED THAT THE AMOUNT HAS BEEN TRANSFERRED BY M /S SHREE RADHA 5 COMMODITIES SERVICES TO THE ASSESSEE FIRM THROUGH B ANKING CHANNELS AND THAT TOO THROUGH ACCOUNT PAYEE CHEQUES. IT HAS AGAIN BEE N SUBMITTED THAT THE ASSESSMENT IN THE CASE OF SH. KAUSHAL GUPTA PROP. M /S SHREE RADHA COMMODITIES SERVICES FOR THE A.Y. 2013-14 HAS ALSO BEEN COMPLET ED BY ITO, WARD-4(3), LUDHIANA UNDER SECTION 143(3) OF THE ACT VIDE ORDER DATED 23.03.2016 ON PEAK ASSESSMENT BASIS WHICH MEANS THAT ALL THE CASH DEPO SITS IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES HAVE BEEN FOUN D TO BE EXPLAINED UNDER IDENTICAL FACTS. IT HAS AGAIN BEEN SUBMITTED THAT E VEN THE ASSESSMENT IN THE CASE OF SH. KAUSHAL GUPTA PROP. M/S SHREE RADHA COMMODIT IES SERVICES FOR THE A.YS. 2011-12 AND 2012-13 WERE ALSO COMPLETED BY ITO, WAR D-5(2), LUDHIANA UNDER SECTION 143(3) OF THE ACT VIDE ORDERS DATED 30.12.2 013 AND 25.02.2014 RESPECTIVELY AFTER MAKING ADHOC ADDITIONS WHICH MEA NS THAT EVEN THE CASH DEPOSITS IN THE BANK ACCOUNT OF M/S SHREE RADHA COM MODITIES SERVICES IN THESE YEARS HAVE ALSO BEEN FOUND TO BE EXPLAINED UNDER ID ENTICAL FACTS. IT HAS AGAIN BEEN SUBMITTED THAT ONCE THE ACCOUNTS OF M/S SHREE RADHA COMMODITIES SERVICES HAVE BEEN BEING ACCEPTED BY THE CONCERNED OFFICERS IN MANY YEARS THEN RAISING THE DOUBTS ABOUT CASH DEPOSITS IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES UNDER IDENTICAL FACTS AN D IN THE CIRCUMSTANCES IS ILLEGAL AND BAD IN LAW SINCE THE ASSESSMENT IN THE CASE OF M/S SHREE RADHA COMMODITIES SERVICES FOR THE A.YS. 2011-12, 2012-13 AND 2013-14 HAVE ALSO BEEN COMPLETED UNDER SECTION 143(3) OF THE ACT AND NO WO RTHWHILE ADDITIONS HAVE BEEN MADE IN THESE YEARS BY THE RESPECTIVE ASSESSIN G OFFICERS. IT HAS AGAIN BEEN SUBMITTED THAT EVEN THE ASSESSMENT IN THE CASH OF M /S SHREE RADHA COMMODITIES SERVICES FOR THE A.Y. 2008-09 WAS REOPENED UNDER SE CTION 147 OF THE ACT UNDER IDENTICAL FACTS AND THE REASSESSMENT WAS COMPLETED IN THIS CASE UNDER SECTION 143(3) OF THE ACT READ WITH SECTION 147 OF THE ACT VIDE ORDER DATED 23.03.2016. IT HAS AGAIN BEEN SUBMITTED THAT THE ASSESSING OFFICER HAS NOT MADE ANY WORTHWHILE ADDITION IN A.Y. 2008-09 IN THIS CASE AP ART FROM SOME ADHOC ADDITIONS WHICH ALSO PROVES BEYOND DOUBT THAT THE CASH DEPOSI TS EVEN IN THE CASE OF M/S SHREE RADHA COMMODITIES SERVICES FOR THE A.Y. 2008- 09 WERE FOUND TO BE EXPLAINED AND THE ASSESSING OFFICER CAME TO THIS CON CLUSION AFTER VERIFYING THE BOOKS OF ACCOUNT ALTHOUGH ON TEST CHECK BASIS. IT H AS AGAIN BEEN SUBMITTED THAT THE REASSESSMENT PROCEEDINGS FOR THE A.Y. 2009-10 I N THE CASE OF M/S SHREE RADHA COMMODITIES SERVICES WERE DROPPED ALTHOUGH THE ASSE SSMENT FOR THIS YEAR WAS ALSO REOPENED ON THE BASIS OF IDENTICAL FACTS/REASO NS. 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 AS SESSMENT FOR THIS YEAR WAS ALSO REOPENED ON THE BASIS OF IDENTICAL FACTS/REASO NS. ON CAREFUL CONSIDERATION OF THE RIVAL CONTENTIONS, I FIND LOT OF FORCE IN THE C ONTENTIONS 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 A CT 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 CA SH DEPOSITS IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES INF ACT REPRESENT UNACCOUNTED INCOME OF THE ASSESSEE FIRM. THE ASSESS ING OFFICER ALSO FAILED TO BRING ON RECORD THE SOURCE OF EARNING OF UNACCOUNTE D INCOME BY THE ASSESSEE FIRM. I AM, THEREFORE, OF THE OPINION THAT ONCE THE CASH DEPOSITS IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES HAS BEEN ACCEPTED AS EXPLAINED, THE OUTGOINGS FROM THE SAME BANK ACCOUNT CANNOT BE DOUBTED UNDER ANY CIRCUMSTANCES. MOREOVER, NO ADDITION HAS BEEN MADE UNDER IDENTICAL 6 FACTS AND IN THE CIRCUMSTANCES IN THE CASE OF THE A SSESSEE FIRM IN SOME OF THE SUBSEQUENT ASSESSMENT YEARS ALTHOUGH THE ASSESSMENT S IN THOSE YEARS WERE ALSO COMPLETED UNDER SECTION 143(3) OF THE ACT AND THE A MOUNT TRANSFERRED BY M/S SHREE RADHA COMMODITIES SERVICES TO THE ASSESSEE FI RM WAS EVEN MUCH MORE IN THOSE YEARS. UNDER SUCH CIRCUMSTANCES, THE ACTION O F THE ASSESSING OFFICER IN MAKING AN ADDITION OF RS.2,26,30,000/- IN THIS CASE ON ACCOUNT OF UNEXPLAINED AMOUNT STATED TO BE RECEIVED FROM M/S SHREE RADH A COMMODITIES SERVICES DURING WHOLE OF THE YEAR CANNOT BE SAID TO BE JUSTI FIED AND AS SUCH THE ADDITION OF RS.2,26,30,000/- MADE BY THE ASSESSING OFFICER I N THIS CASE ON ACCOUNT OF UNEXPLAINED AMOUNT STATED TO BE RECEIVED FROM M/S S HREE RADHA COMMODITIES SERVICES IS, THEREFORE, DIRECTED TO BE DELETED. IN THE RESULT, THE GROUND NO. 4 OF APPEAL TAKEN BY THE ASSESSEE FIRM IS ALLOWED. 8. NOW THE DEPARTMENT IS IN APPEAL. 9. THE LD. SR. DR REITERATED THE OBSERVATIONS MADE BY THE A.O. AND STRONGLY SUPPORTED THE ASSESSMENT ORDER DT. 23/03/2016. 10. IN HIS RIVAL SUBMISSIONS THE LD. COUNSEL FOR TH E ASSESSEE SUBMITTED THAT THE A.O. MADE THE ADDITION ONLY ON THIS BASIS THAT THE ASSESSEE COULD NOT EXPLAIN THE SOURCE OF CASH DEPOSITED IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES THE SISTER CONCERN OF THE ASSE SSEE. IT WAS FURTHER SUBMITTED THAT THE A.O. WHILE FRAMING THE ASSESSMENT UNDER SE CTION 143(3) OF THE ACT IN THE HANDS OF M/S SHREE RADHA COMMODITIES SERVICES, ACCE PTED THE CASH DEPOSITED IN THE BANK ACCOUNT AS GENUINE, THEREFORE THE LD. C IT(A) WAS FULLY JUSTIFIED IN DELETING THE IMPUGNED ADDITION WHEN THE SOURCE OF T HE DEPOSIT IN BANK ACCOUNT WAS CONSIDERED AS GENUINE BY THE DEPARTMENT . 11. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CA SE IT APPEARS THAT THE A.O. MADE THE IMPUGNED ADDITION ON THE BASIS THAT THE AS SESSEE COULD NOT EXPLAIN THE SOURCE OF CASH DEPOSITED IN THE BANK ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES FROM WHOM THE ASSESSEE HAD REC EIVED THE IMPUGNED AMOUNT DURING THE YEAR UNDER CONSIDERATION. THE EXP LANATION OF THE ASSESSEE BEFORE THE LD. CIT(A) WAS THAT THE CONFIRMED COPY O F THE ACCOUNT OF M/S SHREE RADHA COMMODITIES SERVICES WHOSE PROPRIETOR IS SHRI KAUSHAL GUPTA A FAMILY 7 MEMBER OF THE PARTNERS OF THE ASSESSEE FIRM WAS FUR NISHED TO THE A.O. AND THAT THE TRANSACTIONS IN THE CASE OF M/S SHREE RADHA COM MODITIES SERVICES WERE MOSTLY IN CASH DUE TO ITS NATURE OF BUSINESS, WHENE VER 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 AS SESSEE 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. 23/03/20 16, HOWEVER NO ADDITION ON ACCOUNT OF CASH DEPOSITS WERE MADE AND THE A.O. CAM E TO THE CONCLUSION AFTER VERIFYING THE BOOKS OF ACCOUNTS THAT THE CASH DEPOSITED WAS FOUND TO BE EXPLAINED. THE SAID OBSERVATION OF THE LD. CIT(A) W AS NOT REBUTTED. IN THE PRESENT CASE WHEN THE CASH DEPOSITED IN THE BANK AC COUNT OF M/S SHREE RADHA COMMODITIES SERVICES WAS ACCEPTED AND CONSIDERED TO BE GENUINE WHILE FRAMING THE ASSESSMENT UNDER SECTION 143(3) R.W.S 1 47 OF THE ACT VIDE ORDER DT. 23/03/2016 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 UNEXPL AINED 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). 12. AS REGARDS TO THE CROSS OBJECTIONS FILED BY THE ASSESSEES IS CONCERNED, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT HE HAS THE INSTRUCTIONS TO WITHDRAW THE CROSS OBJECTION AND GAVE IN WRITING AS UNDER: THE CROSS OBJECTION IS WITHDRAWN SD/- SUDHIR SEHGAL 23/09/2019 8 13. IN VIEW OF THE ABOVE CROSS OBJECTION FILED BY T HE ASSESSEE IS DISMISSED AS WITHDRAWN. 14. IN THE RESULT, APPEAL OF THE DEPARTMENT AS WELL CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 03/10/2019 ) SD/- SD/- #$ % .., (SANJAY GARG ) ( N.K. SAI NI) & '(/ JUDICIAL MEMBER ! / VICE PRESIDENT AG DATE: 03/10/2019 (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE (+ $ BY ORDER, ; # ASSISTANT REGISTRAR