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TMI Blog2015 (10) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... urn of income for the assessment year 2009-10 on March 25, 2011 declaring income of Rs. 8,61,110. The case of the assessee was selected for scrutiny and notice under section 143(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") was issued to the assessee on August 29, 2011. During the course of scrutiny assessment, the Assessing Officer observed that the assessee has shown sundry creditors to the tune of Rs. 1,73,86,730. To verify the genuineness of the creditors, the Assessing Officer issued letters to the following parties : 1. M/s. Thirumala Textile Process, TPR 2. M/s. SPK Garments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f of the assessee, submitted that the assessee could not furnish confirmation letters before the Assessing Officer and the Commissioner of Income-tax (Appeals) as they did not give sufficient opportunity of hearing to furnish the confirmation letters. Only one opportunity was granted by the Commissioner of Income-tax (Appeals). Now, the assessee has got confirmation letters from all the sundry creditors in support of his claim. Learned counsel for the assessee further submitted that the authorities below have erred in making addition of Rs. 79,08,671 under section 68 and have erred in not considering opening balance of Rs. 47,07,189.25 as on April 1, 2008. Learned counsel also placed on record the copies of confirmation letters in the form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below. Learned counsel for the assessee has filed petition for admission of additional evidence under rule 29 of the Income-tax (Appellate Tribunal) Rules. The assessee has filed additional evidence in the form of confirmation letters from the concerned parties. Learned counsel has contended that the addition under section 68 has been made only for the reason that the assessee could not produce confirmation letters from the concerned creditors. The assessee despite his best efforts, could not contact the parties for obtaining confirmation letters. The Assessing Officer had sought confirmation letters from 7 creditors. However, only three parties could be verified at the time of assessment proceedings. Accordingly, the Assessing Officer made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e any document. Whereas, in the present case, a perusal of the records shows that the Assessing Officer had granted five hearing opportunities to the assessee. The assessee had provided the addresses of creditors as available in his records. It is not the case of Revenue that the assessee has not cooperated or is negligent in prosecuting his case. It is a case where the assessee could not get confirmation letters in time from creditors. It is alleged that the first appellate authority has not granted sufficient opportunity to the assessee to file confirmation letters. Thus, the case law on which the learned Departmental representative has placed reliance are distinguishable on facts itself. 7. Be that as it may, now the assessee has place ..... X X X X Extracts X X X X X X X X Extracts X X X X
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