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2021 (6) TMI 442 - ITAT HYDERABADAddition u/s 68 - Whether CIT (A) has erred in deleting the addition made by the Ld. AO relying on the additional evidence filed by the assessee without calling for remand report from the Ld. AO? - HELD THAT:- As evident from the paper-book filed before us that the income tax return of the creditors were not filed before the Ld.AO which was filed before the Ld.CIT(A). From the Order of the Ld.CIT(A) we find that he has not stated proper reasons with cogent evidence to substantiate that the transactions of creditors are genuine. Only the conformation statements of the creditors will not suffice to establish the genuineness of the creditors. The onus is on the assessee to prove the genuineness of the creditors with cogent evidence - AO has also powers to examine the creditors U/s.131 or u/s.133(6) of the Act which it appears he has not exercised, probably he might not have had proper details of the creditors at the time of assessment proceedings. Thus the entire matter is required to be revisited by the Ld. AO for fresh consideration. Therefore, in the interest of justice, we hereby remit this issue back to the file of the Ld. AO for de-novo consideration, granting liberty to the assessee to file any fresh evidence before him to substantiate its stand. Estimation of income - AO estimated the income of the assessee @ 8% of the gross receipts and also added the interest income - HELD THAT:- As addition was agreed by the assessee at the time of assessment proceedings as per the Ld.AO. On appeal, the Ld. CIT (A) deleted the addition by stating that the addition was made on hypothetical basis without any evidence. We find that nether the Ld. AO nor the Ld. CIT (A) has come out with a speaking order on the issue. Therefore, in the interest of justice, this issue is also remitted back to the file of the Ld. AO for de-novo consideration. Levy of penalty u/s. 271(1)(c) - HELD THAT:- Since, we have remitted back the quantum appeal back to the file of the Ld. AO for de-novo consideration, We find it appropriate to remit the penalty appeal also back to the file of the Ld. AO in order to pass appropriate order in accordance with law and merit based on the assessment order passed in lieu of the appeal being remanded to the file of Ld.AO by the Bench.
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