9911796707
TMI Blog2012 (12) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Sept 2011 served upon the assessee on 07.09.2011 u/s 250(6) of the Act passed by the Ld. CIT(A), Amritsar, hereby confirming part of the addition on the following grounds. a) The Ld. CIT(A) erred in law and on facts in confirming an addition of Rs.15,60,000/- by treating the trade creditors (mentioned in Annexure -A) as unexplained credits as the appellant has not produced them before the AO during the remand proceedings. b) The Ld. CIT(A) erred in law and on facts in confirming an addition of Rs.2,57,660/- on account of non-receipt/late receipt of confirmation letters from the creditors mentioned in Annexure-B attached to the assessment order. c) The Ld. CIT(A) erred in interpreting the remand report filed by the AO and only allowing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case, the Ld. CIT(A) has erred in observing that the cash/loans of Rs.14,27,340/- as genuine particularly when the nature of cash deposits/loans in all the cases is the same, in as much as most of the persons/loans are not having PANs and are not assessed to tax. 5. That the appellant craves leave to add or amend the grounds of appeal before the appeal is heard and disposed of." 4. In the C.O. the assessee has raised following grounds: 1. On the facts and in the circumstances of the case, the Ld. CIT(A) has rightly allowed the relief of Rs.14,27,340/- out of the total addition made at Rs.32,45,500/- as no opportunity was allowed to the assessee at the time of assessment proceedings. 2. On the facts and in the circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved that the assessee had received cash deposits from various persons. As per Annexure-B cash deposits has been received from various persons to whom sales have been made and balance has been repaid as cash but no addresses of the said persons have been mentioned in the books of account. The transactions being found not genuine, the AO worked out the accumulated peak amount of cash deposits of Rs.32.45 lakhs as on 03.03.2006 since there was outgoing of whole of this cash from 03.03.2006 to 31.03.2006. It was submitted by the assessee vide letter dated 23.12.2008 that the assessee is ready to produce all creditors and the names mentioned in the books are Trade Creditors and the assessee had received the amount for the purchase of gold but t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had filed affidavits of the creditors and talbana under section 131 with a request to summon the creditors, so as to ensure and enforce presence of remaining creditors. 7. Before the ld. CIT(A), the assessee filed an paper book containing copy of return, audit report, replies filed before the AO and affidavits so as to explain the impugned cash credits. The AO furnished the remand report dated 30.11.2008 in which the statements of 16 persons were recorded for which the copies of the statements were supplied to the Ld. CIT(A) and three persons out of the said list of 19 persons have expired or demised. In respect of the information concerning Annexure B, the AO had stated that 23 persons have furnished their confirmations but none ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition. As regards Annexure-B, the Ld. CIT(A) observed that 23 entries stand explained during the remand proceedings and accordingly sustained Rs.2,57,660/- and confirmed the rest of the addition. 8. We have heard the rival contentions and perused the facts of the case. There is no dispute to the fact that the assessee had provided complete addresses of all the persons from whom the assessee had received the advances. The explanation of the assessee that advance so received was for the purpose of purchase of gold jewellery having been purchased for few of the persons have been debited to their accounts and rest of the persons because of the price rise in the gold, the gold could not be purchased and the amount was returned up to 31.03.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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