TMI Blog2013 (11) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee reflected such hypothecation with the Bank but the repayment schedule also was furnished before the Assessing Officer Decided against the Revenue. Addition on account of capital introduced by the partners Addition on account of credited in the bank account Both these additions in view of the no books of account produced before the Assessing Officer Held that:- In respect of capital introduced by the partners amounting to Rs.7,60,000/-, the assessee has furnished the necessary evidence which is evident from the written submissions dated 6.11.2009 which is reproduced by the AO in the assessment order Relying upon the judgment of the Honble Gujarat High Court in the case of Pankaj Dyestuff Industries [2005 (7) TM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o books of accounts produced before the Assessing Officer? (C) Whether ITAT is justified in law as well as on fact in deleting the addition of Rs.24,98,000/- made by the Assessing Officer and duly confirmed by the CIT(A) on account of credited in the bank account in view of the no books of account produced before the Assessing Officer?" 2. We have heard learned counsel Mr.P.G. Desai for the Revenue, who has fervently submitted before us that the Tribunal has committed serious error in appreciating material on record, and therefore, order deserves indulgence. 3. Having thus heard learned counsel and on giving deep consideration to the orders of all the Revenue authorities, before adverting to the questions of law, brief facts are ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecation with Centurion Bank of Punjab. The purchase bills also reflected hypothecation with the Bank. The company was established from 1998 and the Centurion Bank of Punjab eventually merged with HDFC Bank. The Tribunal also noted that the books of accounts were audited under section 44AB and the Tax Audit Report under the said provision had been duly furnished before the Assessing Officer, which was also evident from the assessment order. Thus, having noted the audited books of accounts in accordance with the provision of law being section 44AB and the availability of the funds in the balance-sheet filed on 31.3.2007, the Tribunal noted that the Tax Auditor did not point out any discrepancy in the entire report. Not only the purchase bills ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tten submissions on 6.11.2009 pursuant to the show cause notice. However, both these funds had been added to the income of the assessee by the Assessing Officer and, therefore, this was challenged before the CIT(Appeals), which concurred with the Assessing Officer. On this ground also, therefore, the assessee approached the Tribunal for quashment of such order. It would be apt to reproduce the order of the Tribunal, which observed as under:- "11. Having heard both the sides, we have carefully gone through the orders of the authorities below. It is pertinent to note that in respect of capital introduced by the partners amounting to Rs.7,60,000/-, the assessee has furnished the necessary evidence which is evident from the written submiss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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