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TMI Blog2015 (10) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal") in ITA No.433(ASR)/ 2012, for the assessment year 2007-08, claiming following substantial questions of law:- i) Whether the Hon'ble ITAT, Amritsar Bench is justified in deleting the addition made under Section 41(1) of the Income Tax Act, 1961 when the assessee failed to produce any explanation/documentary evidence during the course of assessment proceedings and as well as before Ist appellate authority? ii)Whether on the facts and circumstances of the case, the Hon'ble ITAT Amritsar Bench is right in law in deleting the addition of Rs. 26,30,038/- made by Assessing Officer on account of unexplained cash credit/unsecured loans and confirmed by learned CIT(A) Amritsar as the assessee failed to discharge its onus to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of textile machinery. It filed its return of income on 29.10.2007 at Rs. 44,000/- for the assessment year 2007- 08 and the same was processed under Section 143(1) of the Act. Subsequently, the case was selected for scrutiny as per CBDT's instructions and guidelines. The Assessing Officer completed the assessment under Section 143(3) of the Act on 16.12.2009, Annexure A.1 and while rejecting the books of account of the assessee under Section 145(3) of the Act made additions of Rs. 14,74,763/- representing fictitious and cessation of liability and Rs. 26,30,038/- representing unsecured cash credits/unsecured loans respectively. Not satisfied with the order, the assessee filed appeal before the Commissioner of Income Tax (Appeals) [in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd therefore, the arguments made by the learned DR and the findings of both the authorities below to that extent are not disputed but at the same time, there is also no dispute that the assessee has submitted copies of accounts in the case of sundry creditors amounting to Rs. 14,74,763/- where the balances shown are outstanding as per last year i.e. which has been brought forwarded from the preceding year except provision of interest in the respective years and in the impugned year which has not been disallowed by the AO. The liability pertains to the preceding year, as is evident from pages 6 to 21 where copies of accounts of all sundry creditors are placed on record and were available before both the authorities below. The said balances a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udulent. Notwithstanding the fact, the rejection of books of account, the matter disclosed by the assessee, other material has to be collected by the AO which should have formed the basis of computation of income. In the present case, the assessee having submitted the copies of accounts and complete postal addresses of all the parties is a matter of record and the AO has not collected any adverse material. The learned counsel for the assessee, Mr. P.N.Arora has invited our attention that by mistake at PB-2, the assessee had written confirmed copy of account which was explained to the AO and which is part of the assessment order at page 2 on the hearing dated 16.12.2009, which infact were copies of account. 11. As regards the addition of R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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