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2022 (1) TMI 278 - ITAT BANGALOREAddition u/s. 41(1) - sundry creditors balance of parties from whom no reply was received are bogus and non-existent - Admission of additional evidences as assessee furnished confirmation letters obtained from the above said creditors as additional evidences - HELD THAT:- Since those letters were not available with the assessee during the course of assessment proceedings. Further, they have to be collected from the creditors, over whom the assessee may not be having effective control. It is the case of the assessee that the confirmation letters were obtained subsequent to the completion of the assessment and hence they were produced before Ld. CIT(A) as additional evidences. Thus, we are of the view that there was reasonable cause for the assessee in not producing those letters before the A.O. Accordingly, in the interest of natural justice, we admit the additional evidences. Since these evidences require examination at the end of the A.O., we set aside the order passed by ld. CIT(A) on this issue and restore the same to the file of the A.O. for examining it afresh. Disallowance u/s. 40A(3) - HELD THAT:- We notice that the assessee has agreed for this disallowance before the AO - Accordingly, the Ld. CIT(A) also confirmed the disallowance. Before us, the assessee could not furnish any material to controvert the addition made by the A.O. It was also not shown to us that the addition was agreed under wrong impression. Accordingly, we also confirm the disallowance made u/s. 40A(3) of the Act. Addition being the difference in sales reported in the books of accounts and VAT returns - HELD THAT:- Before the A.O., the assessee could not reconcile the difference and hence agreed for the addition. Before Ld. CIT(A) also the assessee could not reconcile the difference and hence the Ld. CIT(A) also confirmed the same. Before us also, the assessee could not reconcile the difference. Hence, we have no other option but to confirm the addition made by the A.O. on this issue.
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