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2014 (9) TMI 200 - AT - Income TaxAddition of unaccounted money shown as booking deposit Failure to produce details - Held that:- CIT(A) was of the view that assessee has received in Akshar Corporation and in Akshar Enterprise during the year - assessee has failed to provide proper and complete addresses of the customers from whom booking advances has been received during the year and thereby assessee has completely failed to discharge the onus cast upon it and has not established the identity, the genuineness of the transaction and the creditworthiness of the creditors - with respect to the balance amount which was received in earlier years and the assesee had not discharged the onus proving the identity, genuineness of the transaction and creditworthiness of the creditors held that the same can be taxed in the year of receipt - the amounts were stated to have been received in earlier years, the AO is directed to verify the booking advance received in the relevant year and if the assessee fails to furnish the requisite details/evidences and satisfactory explanation and thereby to prove the identity of creditors and creditworthiness of the transaction, the AO was directed to make addition in the year of receipt the order of the CIT(A) is upheld Decided against revenue. Bogus liability of sundry creditors disallowed Held that:- CIT(A) has noted that the creditors namely, Mahalaxmi Pipe Suppliers, Dhaval Steel, were outstanding since 01-0-2004 and in case of Patel Hardware, assessee had made purchases in A.Y. 2006-07 and 2007-08 - the addition u/s. 41(1) can only made when the creditor confirms the waiving for all dues receivable and in the year in which the creditor waives of the debts - Revenue has not brought any material to demonstrate that the creditors waived off the amounts due to him nor have they brought any material to controvert the findings of CIT(A) the order of the CIT(A) is upheld Decided against revenue. Bogus liability of unsecured loan disallowed Held that:- Assessee shown the liability of unsecured loans which has been stated to be from ex-partners - CIT(A) has given a finding that the Assessee has not been able to furnish the addresses or whereabouts of the persons claimed to be ex-partners nor has furnished any proof like partnership deed, audit report of earlier years to prove that the said persons were his ex-partners - assessee has failed to prove that the amounts credited in their accounts were share of profits for earlier years - no material has been placed on record by either parties to controvert the findings of CIT(A) the order of the CIT(A) is upheld Decided against revenue. Reopening of assessment for booking advances u/s 150(1) Held that:- CIT(A) has directed the AO to reexamine addition in respect of booking advance, creditors for goods and in respect of balance outstanding in the name of ex-partner pertaining to the balances brought forward for earlier years and in the case the assessee is not able to discharge the onus then make the addition in the respective years of its receipts - no material has been placed to demonstrate that pursuant to the directions of CIT(A), the AO has initiated reassessment proceedings - the challenge of re-opening is pre-mature and the Assessee may take due legal recourse if so advised in appropriate proceedings Decided against assessee.
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