MS. FARHANA KHANAM,NEW DELHI vs. ITO, NEW DELHI

Assessee by : Shri R.S. Singhvi, CA Revenue by : Shri Atiq Ahmed Sr. DR ORDER This appeal of the assessee arises from the order of the ld. CIT(A)- 16, New Delhi vide order dated 10.03.2017 for A.Y. 2009-10.

3. Briefly stated, the facts of the case are that the Assessing Officer found deposits to the tune of Rs. 12,97,850/- in the S.B. A/c No. 603210100018960 in Bank of India, Ansari Road, Darya Ganj, New Delhi out of which Rs. 10 lakhs were deposited on 08/10/2008. The assessee was asked to furnish source of cash. The assessee submitted that it was received as gift from close relatives and unsecured loans for purchase of a house. The Assessing Officer was not satisfied with the explanation of the assessee and statement recorded and accordingly made addition of Rs. 12,97,850/- which was confirmed by the ld. CIT(A).

4. I have heard the rival submissions and perused the relevant material on record. It is a matter of fact that during the course of statement, the assessee submitted that these are the sale proceeds of the goods which was explained before the ld. CIT(A) as well. On perusal of the record, it is evident that the assessee has filed return of income u/s 44AF of the Act and as per paper book II, receipts are Rs. 12,97,850/- as against which the assessee has declared G.P. of 27.3% which is much above as required under the provisions of section 44AF of the Act. The assessee has also produced cash flow statement which is available at pages 3-11 of the paper book and bank statement at 3 pages 12 to 18 of the paper book. The Assessing Officer and the ld. CIT(A) have ignored such important explanation given by the assessee and accordingly no addition on this count can be made. Accordingly, addition so made is directed to be deleted. Thus, the grounds raised by the assessee are allowed.