TMI Blog2002 (2) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing break up:-- (a) Trading additions 1,41,388 (b) Fresh credits along with interest 2,68,532 (c) Squared up accounts 94,000 (d) interest not charged on advances 51,745 5,55,465 3. The above assessment order was set aside by the CIT(A) on all additions, except trading addition of Rs. 87,566, which was sustained. The CIT(A) decided the matter on 6-2-1990. He directed that a fresh opportunity be granted to the assessee to prove its case. The CIT(A) noted that there was litigation going on and that the firm had suffered heavy losses. Wife/mother of partners had also expired and the assessee/partners had faced adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refused to sign on the order sheet in confirmation of having seen such a list. The fact of the matter is that the books of the appellant were impounded and lying with the ITO and a mere showing of such a list would not be considered to be an adequate opportunity given to furnish evidence. The ITO should have supplied a list of the creditors in writing with addresses and amounts so that the appellant could furnish supporting evidence regarding these. The AR of the appellant has also pointed out that issue regarding these creditors was not open before the ITO as specific instructions have been given by the CIT(A) in his order to examine only the issue relating to the creditors in respect of which additions had been made in the first order. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 (3) Sh. Hari Chand on 27-5-1982 by cash Rs. 5,000 squared up by debiting Rs. 2,000 on 5-6-1982 and Rs. 3,000 on 11-6-1982 Rs. 5,000 (4) Shri Harkishan Chand on 27-5-1982 by cash Rs. 10,000 squared up on 5-6-1982 by debiting Rs. 5,000 and on 9-6-1982 Rs. 5,000 Rs. 10,000 (5) Sh. Raj Paul Co. on 3-6-1982 by pay order Rs. 25,000 squared up by showing debits of Rs. 5,000 each on subsequent 5 dates Rs. 25,000 ----------------- Total Rs. 50,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d impounded with the revenue authorities. The assessee did not have details of cash credits. Even list of creditors with their addresses and amounts of credits was not supplied to the assessee during the course of second assessment. The matter was required to be remanded by the CIT twice to afford adequate opportunity to the assessee to prove his case. The ld. CIT(A) in rejecting assessee's objection that the creditors could not be examined by the ITO as there were no specific instructions in the remand order of the CIT(A) and his finding that in appeal the CIT(A) could go into the matter, which was not considered at the time of assessment and, therefore, ld. CIT(A) considered it justified to again set aside the question relating to all new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , cannot thus, be said to be adequate and hearing fair in the circumstances of the case. 12. On examination of squared-up accounts, we find that Rs. 30,000 of credits were received by the assessee either through cheque or draft. This fact lends support to the genuineness of credits. Three credits are of Rs. 5,000 each which do not require demonstrative evidence to prove them. The assessee has been able to prove majority of cash credits treated as unexplained leading to an addition of Rs. 3,58,352 (Rs. 2,68,532 + Rs. 90,000) in the first assessment. The trading addition of Rs. 87,566 sustained by the revenue authorities was deleted by the Tribunal vide order dated 27-6-1995. All other additions except Rs. 50,000 in dispute, have been dele ..... X X X X Extracts X X X X X X X X Extracts X X X X
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