TMI Blog2011 (5) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 68 of the Act of 1961 straight-away merely because of the reason that the genuineness of the transaction shown in the heading of the sundry creditors was not found genuine. In view of the above reasons, following section 145(3) the Assessing Officer should have proceeded under section 144 and should have followed the procedure of assessment of the tax, Tribunal and the Assessing Officer though recorded finding of fact correctly that the transaction of sundry creditors were not genuine but so far as the assessment order is concerned that deserved to be set aside and the Assessing Officer should assess the income afresh under section 145(3), matter is remanded back to the Assessing Officer - 16 OF 2010 - - - Dated:- 10-5-2011 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department to proceed further in the matter and it was not the duty of the assessee to find out more about the creditworthiness of the persons who supplied the materials. It is also submitted that even such was not necessary in the matter of trade creditors which may be necessary in the matter of cash deposit. In the alternative, it has been submitted that once the Assessing Officer has rejected the books of account after appreciation of the evidence of the alleged materials suppliers then the Assessing Officer should have proceeded to assess the income of the assessee under section 144(3) of the Act of 1961. It is submitted that non-proving of the genuineness of the transaction shown by the assessee in his books of account itself cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve supplied the material to the assessee but when the transactions were found not to be genuine then that entry can be treated to be a cash amount in the hands of the assessee for the purpose of taxing under section 68 of the Act of 1961. We have considered the submissions of the learned counsel for the parties and perused the above judgments. It is not in dispute that the names of the persons, who were alleged to have supplied the materials to the assessee, were disclosed by the assessee and the Assessing Officer summoned 8 persons out of 12 persons and they gave their statements before the Assessing Officer and we after perusal of the reasons given in the assessment order and after considering the reasons given by the Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income of the assessee is concerned, for that purpose a few facts are very relevant and which are that the total gross receipts of the assessee were Rs. 4,51,01,011 the disclosure of his income is Rs. 14,13,624 and interestingly this income was accepted by the Assessing Officer himself which is apparent from the assessment order. Then the Assessing Officer added the amount shown in the accounts of the sundry creditors to the tune of Rs. 1,59,90,274 and assessed the total income as Rs. 1,74,03,900 meaning thereby by this order of assessment the Assessing Officer accepted the books of account for the purpose of finding out the profit shown by the assessee to be correct as disclosed in the return and thereafter added the amount of the cred ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
