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2017 (9) TMI 659 - AT - Income TaxEstimation of income - disallowance of expenses - addition in respect of inadequate personal expenses - Held that:- Assessee neither appeared before the A.O. nor filed any books of accounts or any details in respect of the business carried out by the assessee and also various expenses claimed by him. The A.O. on the basis of material available as per the return filed by the assessee, assessment is completed u/s 144 of the Act. Even the Ld. CIT(A) has given as many as opportunities to the assessee, however, the assessee has appeared on 22.11.2011 and filed a written submission requesting him to dispose of the appeal on merits. The Ld. CIT(A) in his order, categorically observed that the assessee has not filed any evidence except producing some ledger extracts in respect of the expenses claimed by the assessee. He has also observed that only basing on ledger extracts, no expenditure can be allowed and therefore confirmed the order of the A.O. Thus in the interest of justice, the entire issues has to go back to the A.O. to decide the case based on the books of accounts and relevant evidences. Therefore, we set aside the order passed by the Ld. CIT(A) and send it back to the A.O. to adjudicate this issue de-novo in accordance with law. In so far addition made by the A.O. the A.O. has observed that, it is seen from the assessee’s balance sheet that the assessee is showing liability to the extent of ₹ 21,00,383/- as cash creditors in the name of assessee’s relatives and his accountant, etc. In the absence of any evidence to prove that these liabilities are genuine, the same are treated as assessee’s income and accordingly addition was made. On appeal, Ld. CIT(A) sustained ₹ 9,20,383/- by considering the written submissions filed by the assessee. Before us, the Ld. Counsel for the assessee has submitted that before the A.O., no details are filed. Even before the CIT(A), only written submissions are filed. No correct facts are coming out and submitted that the issue may be remitted back to the A.O. for de-novo consideration.
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