TMI Blog2015 (10) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... directed to cooperate with the AO and furnish the requisite details. - Decided in favour of revenue for statistical purposes.. Trading addition - assessee did not produce the books of account - CIT(A) deleted the addition on the ground that the GP rate shown during the year under consideration is better in comparison to preceding year and no addition is warranted - Held that:- Even the justification given by the assessee is not based on any evidence. Further, the ld. CIT (A) also had confirmed the disallowance of expenses on the basis of audit report under section 44AB of the IT Act which shows that assessee’s books are not reliable. As such, the finding given on GP by the ld. CIT (A) is against its own finding. Therefore, in the interests of justice, this issue is also set aside to the AO and the assessee is directed to produce the books of account. If not possible, produce the certified copy of the complete books of account from the Excise Authorities to verify the correctness and completeness of the books of account and take decision on this issue. Thus this issue is also set aside for denovo order. - Decided in favour of revenue for statistical purposes.. - ITA No. 592/JP/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition by observing that assessee had not filed any confirmation before the AO. However, it filed confirmation before the appellate proceedings and which were admitted by the ld. CIT (A) under Rule 46A as additional evidences. Same were forwarded to the AO. The AO issued summons under section 133(6) to all the cash creditors. Out of 63 cash creditors, 40 cash creditors had also appeared before the AO and confirmed having given the loan to appellant. All the cash creditors were also assessed to tax and also submitted copies of their bank statement. In the case of Smt. Suman Goyal, the bank statement could not be submitted. However, she was assessed to tax and her PAN was stated to be AAZPG 5755 F. Similarly in the cases of Smt. Rachana Bhagrai, Shri Tara Chand Goyal and Shree Ram Tent House, copies of bank statements could not be submitted though they were assessed to tax and their PANs were stated to be AFBPB 7205 E, AAZPG 5754E and AALFS 5766 N respectively. The AO further observed that after lapse of 7-8 years these creditors could not have got the bank statement even from the bank. Further in five cases, the summons were returned unserved by the Postal authorities and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number of cases which has been narrated in his order on page 10. In case of non compliance of summons issued under section 131, after verification of PANs, he held that appellant had satisfactorily explained the identity, creditworthiness of the creditor and genuineness of the transaction. The loans had been received through account payee cheques and interest was paid after deduction of TDS. He further relied on the decision in case of Mod Creation Pvt. Ltd. vs. ITO, 62 DTR 25 (Delhi HC) and directed the AO to delete the addition of ₹ 65,46,817/-. He only confirmed the addition of ₹ 1.50 lacs out of total loans received during the year. 4. Being aggrieved, the revenue is before us. The ld. D/R vehemently supported the order of the AO and argued that assessee had not produced the books of account and no confirmation of cash creditors were submitted during the assessment proceedings. However, these were submitted at the appellate stage which had also remanded to the AO. But in case of 19 cash creditors, AO has categorically assigned the reasons that cash credits to the tune of ₹ 21,31,836/- were not genuine. In case of 5 cash creditors, summons were not served or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad been confiscated by the Excise Department. The assessee even had not produced certified copy of books of account from the Excise Authorities. The other theory of not producing the books of account that there was a fire in the shop and claimed that books had been destroyed in fire. Therefore, assessee made contradictory submissions before the AO. The ld. CIT (A) had not given any finding on the regular books of account. There was a search and seizure operation under section 132(1) of the IT Act on 12.04.2005 in case of M/s. B.C. Purohit Co. and Shri Kripa Shankar Sharma, one of the associates of M/s. B.C. Puirohit Co. in Jaipur. These persons were engaged in providing bogus entries in the form of gifts, loans, share application money, long-term capital gains etc. The assessee has taken entry of ₹ 1,50,000/- which has been accepted by the assessee. The fresh loan during the year was taken by the assessee at ₹ 1.06 crores. The assessee only filed confirmation in case of 19 persons but as per remand report in case of 5 persons the summons were not served. The assessee also has not produced these cash creditors for verification. Therefore, burden has not been shifted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he lower authorities as there is a confiscation of books of account by the Excise Authorities as stated by the assessee. It may be possible that assessee has also concealed the sales as well as excise duty. The ld. CIT (A) has not ascertained, whether any adjudication has been made by the Excise Authorities or not. Therefore, matter may be set aside to the AO. 9. At the outset, the ld. A/R of the assessee submitted that the ld. CIT (A) has rightly deleted the addition on the ground that the GP rate shown during the year under consideration is better in comparison to preceding year and no addition is warranted. 10. We have gone through the submissions made by both the parties. Even the justification given by the assessee is not based on any evidence. Further, the ld. CIT (A) also had confirmed the disallowance of expenses on the basis of audit report under section 44AB of the IT Act which shows that assessee s books are not reliable. As such, the finding given on GP by the ld. CIT (A) is against its own finding. Therefore, in the interests of justice, this issue is also set aside to the AO and the assessee is directed to produce the books of account. If not possible, produce t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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