Shrigopal Rameshkumar Sales Pvt. Ltd. Vs DCIT (ITAT Nagpur)
ITAT Nagpur held that addition is liable to be deleted since the entire sales having already been recorded in the books of accounts and no sales having been found to have been made out of the books of accounts. Accordingly, addition deleted in absence of any corroborative evidence.
Facts- The assessee is engaged in the business of running a Ginning Mill and dealing in cotton. A search and seizure action u/s. 132(1) of the Income Tax Act, 1961 was conducted on the assessee on 12/02/2015. During the course of search, it is the case of the Revenue that certain files were seized and more particularly documents inventorised as B16, wherein certain recordings were found which showed the assessee having received alleged cash of Rs. 2,50,00,000. AO accordingly made addition.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the entire sales having already been recorded in the books of accounts and no sales having been found to have been made out of the books of accounts there is absolutely no occasion for the assessee to have received the said amount of Rs. 2.5 crore in cash as alleged and more particularly when there is absolutely no evidence whatsoever from the person who allegedly has made the payment in cash and forming that the said amount was actually paid by him. Departmental Representative cannot change the colour and complexion of the case by posing facts aline in assessment.
