M/S. BALAJI DISTRIBUTORS ,KOLKATA vs. ITO,WARD-25(1), KOLKATA. , KOLKATA

The assessee in this appeal has agitated against the confirmation of addition of Rs.1,00,56,415/- made by the Assessing Officer invoking section 69A of the Act.

At the outset, the ld. Counsel for the assessee has invited our attention to the impugned order of the Assessing Officer to submit that the Assessing Officer has made the impugned addition observing that the Assessment Year: 2017-18 M/s Balaji Distributors turnover of the assessee-firm was declared at Rs.13,08,97,837/-. The assessee deposited Rs.14,09,54,252/- in his bank account. Therefore, there was a difference of Rs.1,00,56,415/- between the turnover of the assessee and the amount deposited in the bank account of the assessee. The Assessing Officer treated the said difference as unexplained income of the assessee and made the impugned addition. The ld. Counsel has demonstrated from the record that the Assessing Officer has taken the wrong figure of turnover. He has invited our attention to page 4 of the paper-book to submit that in the Profit & Loss A/c, the total sales were declared at Rs.13.04 crores and further a note was given that the sales shown in the Profit & Loss A/c was exclusive of VAT collected thereon. The ld. Counsel has further invited our attention to page 53 of the paper- book to show that the total sales of the assessee inclusive of VAT were at Rs.14,56,57,937/- and the VAT collected on sales was Rs. 1,18,93,814/- . The ld. Counsel, therefore, has reconciled the figures.

The ld. DR could not point out any defect or infirmity in the reconciliation figure submitted by the ld. AR of the assessee.

In view of this, the impugned addition made by the lower authorities is not sustainable and the same is accordingly ordered to be deleted.