S.P. JAYAM,NAMAKKAL vs. ITO, WARD - 2, NAMAKKAL

This appeal filed by the assessee is directed against the order of the learned Commissioner of Income Tax (Appeals), Salem in dated 25.06.2019 relevant to the Assessment Year 2010-11.

The brief facts of the case are that the A.O noticed from the AIR information that the assessee has made cash deposits amounting to Rs. 11,75,265/- in his savings bank account maintained with HDFC

On appeal the Ld. CIT(A) called the remand report from the A.O and observed that the A.O has contended that the assessee has failed to produce any documentary evidence such as name and address of the parties to whom the raw-material was sold, the date of sale, quantum value of raw-material sold, to substantiate that the amount received by way of cheque by the assessee was paid out of the sale of poultry raw-materials. The A.O therefore concluded that the assessee could not substantiate the source towards claim of cash deposit of Rs.

On appeal before us, the ld. Counsel for the assessee has pointed out from the paper book at page No.2 that the assessee has received cash and payment also made to Vijeth Proteins. The total amount received by the assessee is at Rs.6,49,275/- and submitted that the same may be verified by the A.O. He further submitted that so far as other addition is concerned on 07.01.2010 the assessee has received a cheque from Kaliyannan Poultry Farm. On 09.01.2010 payment of Rs.3,20,046/- made to M/s. Mahavir Bansilal Jain vide cheque No.345237 and on 12.01.2010 payment of Rs. 26,396/- made to M/s. Naresh Brothers vide cheque No.345238 respectively and submitted that the issue may be remitted back to the A.O to examine receipts and payments made by the assessee.

We have heard both the sides, perused the materials available on record and gone through the orders of the authorities below. The case of the A.O is that the assessee has failed to explain cash deposits made in the bank account and therefore, he added the entire deposits made by the assessee to the income of the assessee. The case of the assessee is that the assessee is in the poultry raw material business and whatever the amount received from the customers deposited in the bank account. Subsequently, the same is paid to the various parties from whom he has brought the raw material. So far as the addition in respect of Rs. 3,20,046/- is concerned, he submitted that the payment is received through cheque and payment is also made by cheque and submitted that these details are available in the paper book page-2 and submitted that the issue may be remitted back to the A.O to examine the entire issue denovo. We have gone through the paper book page-2 filed by the assessee and we are of the opinion that page- 2 of the paper book is a material document it needs to be verified and has to be considered by the A.O. This material document was not before the A.O at the time of passing the assessment order therefore, in the interest of justice, we set aside the order passed by the Ld.

In the result, the appeal filed by the assessee is allowed for statistical purposes.