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TMI Blog2012 (8) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances explained by the assessee do not fall under clauses (a), (b), (c) and (d) of Rule 46A(1) of Income Tax Rules, 1961. (ii) that sufficient opportunities mere allowed to the assessee to furnish the relevant documents and produce the books of account during the assessment proceedings, which the assessee failed to furnish/produce. 3. That the Ld. CTT(A) erred in law and on facts in deleting the addition of Rs. 2,10,170/- on account of demurrage paid to railways when no evidence was produced by assessee before AO to prove his claim. 4. That the Ld. CIT(A) erred in law and on facts in deleting the addition of Rs. 4,36,632/- made by AO on account of unexplained addition to capital account, when no evidence was produced by assessee before AO to prove his claim. 5. That the Ld. CIT (A) has erred in law in deleting the addition of Rs. 8.00,000/- made by the Assessing Officer u/s 68 of the Income Tax Act, 1961 by ignoring the fact that the assessee had failed to file any confirmation before the AO and had further failed to establish the identity & creditworthiness of the investor and genuineness of the transaction during the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.12.2008 i.e. Monday, the reply along-with detail was sought to be submitted by 11 AM, along-with reply dated 20.12.2008 and the same was not accepted by the AO The assessment order was passed on 22.12.2008. 6. The Id. CIT(A) has admitted the additional ground of appeal, after recording the reasons, as is evident from the relevant part of his findings, reproduced hereunder: "(k) I have gone through the detailed submissions of the ld. Counsel of the assessee and the different remand reports of the Assessing Officers and also the replies of the assessee to the remand report as mentioned above. The assessee submitted a date-wise sequence of events chart which summarizes the proceedings of the hearing on different dates and the AO has not been able to rebut the same and I find that penalty proceedings. u/s 271(l)(b), which were initiated on account of the alleged default of the assessee for non-appearing were dropped by way of order, dated 24.06.2009 and for which the copy of the order has been placed in the paper book filed before me. (1). 1 also find that substantial information has been given to the Assessing Officer and on 19.12.2008, the date was refused but, then the order wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entary, other than the evidence produced by him, during the course of proceedings before the AO, except in the circumstances set out therein. It does not deal with the power of the first appellate authority, to make further enquiry. In the present case, the assessee has already filed requisite details before the AO and further detail was to be filed before the AO. and the AO refused to accept the same. Therefore, the assessee was compelled to file details by way of Speed Post. Further, new evidence filed by the assessee from the government agency and the same are essential for disposal of the appeal. Ld. CIT(A) has considered the new evidence and the facts and circumstances of the case in entirety and validly, after recording reasons, admitted the new evidences. In view of this, we do not find any infirmity in the admission of the new evidence by the CIT(A), as the interest of the quasi-judicial proceedings is to render justice and not to deny justice by declining to admit new evidence. The circumstances of the case, duly justify admission of the new evidence by the CIT(A), hence, these two grounds raised by the revenue are dismissed. 8. In Ground No. 3, it is contended by the rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form of Paper Book at pages 15 to 16, deleted the impugned addition. The relevant findings of the ld. CIT(A) are reproduced hereunder : (iii). Regarding the addition in the capital account of the assessee, a copy of the capital account is available at pages 15 to 16 of Paper Book and wherein a sum of Rs. 41,350/- is on account of remittance from LIC of India and amount of Rs. 68,600/- is on account of constituency allowance received by the assessee being an Municipal Councillor, which has been credited to his capital account and which income has also been offered under the head Miscellaneous Income while filing the return of income and a sum of Rs, 3,32,382/- is on account of transfer of brought forward balance from Modern Motors, which is a transfer entry only from earlier year and, thus, the said explanation is bona fide and deserves to be considered and, as such the AO is directed to delete the addition of Rs. 4,36,632/-" 11. We have carefully perused the rival submissions, facts of the case and the relevant record and the findings of the CIT(A) including the submissions filed before him and found that the addition has been deleted on the basis of corroborative evidence. Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee and the deletion has been made on the foundation of requisite material on record in respect of Shri Gurdip Singh. Therefore, the findings of the CIT(A) are upheld and ground of appeal of the revenue is dismissed. 14. In CO. No.52/Chd/2011, the assessee has contended in the grounds of appeal of the CO that CIT(A), erred in sustaining the addition of cash credits during the year under consideration in the name of Shri Baldev Raj to the tune of Rs. 5 lacs and another addition of Rs. 5 lacs in the name of Shri B.C. Tiwari. In view of the findings recorded by us, while adjudicating the appeal of the revenue, in the immediately preceding para of this order, the issue raised in the CO, is dismissed, as the same has been duly adjudicated therein. 15. In Ground No. 6 in the appeal of the revenue, the revenue contended that CIT(A) erred in law and facts in allowing relief of Rs. 7,24,478/- out of the total disallowance of Rs. 7,30,033/- made by the A.O. on account of interest paid on non-business interest free advances. In this case the AO noticed that an interest of Rs. 7,30,033/- has been debited to Profit & Loss Account. It was further observed by the AO that debit balance of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , but has only stated that no separate addition out of these major expenses is being made, since the same is covered by the addition in respect of ingenuine credits. (vii). After going through the submissions and the "details filed by the assessee, it is held that all the expenses under the heads such as consumable stores, freight paid, oil and lubricants, repair and maintenance and wages are genuine and justified. However, since I have separately confirmed the addition of Rs. 10 lacs on account of two in genuine credits in the name of Sh. Baldev Raj and Sh. B.C. Tiwari and accordingly, it is held that the said addition in respect of two cash credits shall cover the disallowance, if any, out of various heads as mentioned above." 16. ld. CIT(A) has directed the AO to disallow interest as per the same rate of interest which is being charged by the bank from the assessee. We do not find any infirmity in the findings of the CIT(A), in the light of the fact-situation of the case. Therefore, this ground of appeal is dismissed. 17. Ground Nos. 7 & 8 are general in nature and need no separate adjudication. Consequently, same are dismissed. 18. In the result, appeal of the revenue as we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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