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Facts
The assessee filed an appeal against the CIT(A)'s order confirming an addition of Rs. 37,06,103/- as unexplained money. The issue arose due to purchases and sales for the period 1.7.2016 to 30.9.2016 being mistakenly entered in the partner's current account instead of the assessee's accounts.
Held
The Tribunal agreed that a mistake had occurred in entering the purchase and sales transactions in the partner's current account. To do justice, the issue was restored to the Assessing Officer (AO).
Key Issues
Whether the AO should be directed to re-examine the transactions of purchases and sales mistakenly entered in the partner's current account.
Sections Cited
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Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK
Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR
("नधा"रण वष" / Assessment Year : 2017-18) Gunjan Enterprises, Main Road, Vs Income Tax officer, Bhawanipatna Junagarh, Junagarh, Kalahandi PAN No. : AAQFG 0439 H (अपीलाथ" /Appellant) .. (""यथ" / Respondent) "नधा"रती क" ओर से /Assessee by : Shri Manoj Kumar Sultania, CA राज"व क" ओर से /Revenue by : Shri Vijaya Singh, ld Sr DR सुनवाई क" तार"ख / Date of Hearing : 3 /12/2025 : 3 /12/2025 घोषणा क" तार"ख/Date of Pronouncement आदेश / O R D E R Per Bench :
This is an appeal filed by the assessee against the order dated 25.8.2025 passed by ld CIT(A), NFAC in Appeal No.NFAC/2012-13/10128163 for the assessment year 2013-14.
Shri Manoj Kumar Sultania, ld AR appeared for the assessee and Shri Vijaya Singh, ld Sr DR appeared for the revenue.
It was submitted by ld AR that the issue in the appeal was against the action of the ld CIT(A) in confirming the addition of unexplained money deposited in the assessee’s bank account to an extent of Rs.37,06,103/-. It was the submission that the sales shown in the profit and loss account was Rs.1.56 2 crores and the total credit in the bank account of the assessee was Rs.2.5 crores. It was the submission that there was excess credit of Rs.59.03 lakhs. It was the submission that from the sale, VAT to an extent of Rs.26.96 lakhs was reduced and the difference of Rs.37.06 lakhs was treated by the AO as unexplained money. It was the submission that the purchase and sale for the period 1.7.2016 to 30.9.2016 was unfortunately entered in the partner’s current account. It was the submission that this was a mistake committed by the Accountant of the assessee. Ld AR drew our attention to pages 76 and 77 of paper book, which were the purchases made from Parle Biscuits Pvt. Ltd., and Perfetti Van Melle India Pvt Ltd., for the period from 1.7.2016 to 30.9.2016. Ld AR has also shown the details of the sales for the period 1.7.2016 to 30.9.2016, which are at pages 72 to 75 of PB. It was the submission that these transactions had been entered in the account of partner’s current account. It was the submission that the assessee does full purchases from both Parle Products and Perfetti Van Melle India Ltd., It was the submission that the issue may be restored to the file of the AO so that the assessee can show the transactions that had been disclosed by it. If the transactions are taken into consideration, the purchases through partner’s account was to be an extent of Rs.33,23,736/- and VAT of Rs.4,19,569/- and the corresponding sales is also taken into consideration of Rs.38,79,182/-, there would be no difference which would be required for making the addition.
In reply, ld Sr DR submitted that he has no objection, if the issues are restored to the file of the AO for verification as to whether the sales are actually made in the hands of the assessee but wrongly entered in the partner’s current account.
3 5. We have considered the rival submissions. As it has been fairly agreed by ld AR that the mistake has happened in the transaction of purchases and sales for the period 1.7.2016 to 30.9.2016 which had been entered into the partner’s current account, in the interest of justice, this issue is restored to the file of the AO. The Assessing Officer shall examine whether the transaction in respect of period 1.7.2016 to 30.9.2016 has actually been omitted from the account of the assessee and the transaction having been entered in the current account of the partner. The Assessing Officer shall also examine whether the corresponding revenue in respect of sales have been entered in the account of the assessee. The claim of the assessee is that the purchases and sales have been deposited and credited to the partner’s current account. The Assessing Officer shall examine this and then readjudicate the issue. The assessee is directed to cooperate in the set aside proceedings.
In the result, appeal of the assessee stands partly allowed for statistical purposes. Order dictated and pronounced in the open court on 3/12/2025. (राजेश कुमार) (जाज" माथन) (RAJESH KUMAR) (GEORGE MATHAN) लेखा सद"य/ ACCOUNTANT MEMBER "या"यक सद"य / JUDICIAL MEMBER "दनांक Dated 3/12/2025 B.K.Parida, Sr.P.S(OS)