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Shri Moti Mani Singh Versus Income Tax Officer -19 (3) -3, Mumbai

2016 (1) TMI 354 - ITAT MUMBAI

Addition made u/s 41(1) - genuineness of sundry creditors - Held that:- Right from the stage of the assessment proceedings, the assessee was required to furnish addresses of the creditors and to file the confirmations which up till the stage of the Tribunal also, no such details or any evidence have been filed. Further, assessee was unable to corroborate or substantiate its explanation that assessee had returned the damaged goods to the creditors and for this reason alone the assessee has not ma .....

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T(A) inasmuch as assessee has been unable to substantiate from the record that the liability in real sense is actually subsisting in this year and there is no cessation of liability. Thus, addition has rightly been made by and confirmed by the revenue authorities - Decided against assessee

Addition u/s 69A on account of cash deposit made in the bank account - Held that:- The transactions of deposits and withdrawals pertained to assessee’s business activities. In support, the assessee .....

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es as prima facie it appears that these are relating to some business transaction or work-out some peak credit. Thus, in the interest of justice, we feel this matter should be restored back to the file of the AO to examine the impugned issue in the light of our observation. The assessee will give the entire requisite facts to the AO to make the proper assessment on this issue. - Decided in favour of assessee for statistical purpose. - ITA No. : 1331/Mum/2011 - Dated:- 19-10-2015 - SHRI D. KARUNA .....

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e addition of ₹ 15,36,170/- made u/s 41(1) of the Income Tax Act, 1961 by the Assessing Officer without clearly looking into the merits of the appellants case. 2. The Ld. Assessing Officer Commissioner of Income tax (Appeals) -30, Mumbai has erred in law in confirming the addition of ₹ 18,41,027/- made u/s 69A of the Income Tax Act, 1961 by the Assessing Officer without appreciating the facts of the appellants case . 2. Brief facts qua the issue raised in ground no. 1 is that, assess .....

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undry creditors and also to file confirmation from them. However, as per the observation made by the AO in the assessment order, the assessee could not provide any such details and addresses or confirmation. The assessee s case before the AO was that, the amount outstanding mostly on account of the fact that damaged goods were returned to the creditors and hence no payment was made by the assessee to the sundry creditors. The Ld. AO held that, since assessee could not discharge his onus to prove .....

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on. The Ld. CIT(A), after considering the relevant finding given in the assessment order and the submissions made by the assessee, noted that assessee could not furnish any details or evidence whatsoever to show that there is an outstanding liability in the name of the sundry creditors as on the date of balance sheet. Further there is no business transaction from these parties and the liability is subsisting for more than 3 years. Therefore, there was sufficient reason by the AO to make the addi .....

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dits in the books of accounts. In this case, none of conditions have been fulfilled and most of the liabilities are continuing in the assessment year 2008-09 and 2009-10 also, therefore, addition cannot be made in this year as cessation of liability. 5. On the other hand, the Ld. DR submitted that none of the contentions raised by the assessee have been corroborated by any evidences, neither any details like names and addresses nor any confirmation from any creditors were filed, thus, assessee w .....

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nish addresses of the creditors and to file the confirmations which up till the stage of the Tribunal also, no such details or any evidence have been filed. Further, assessee was unable to corroborate or substantiate its explanation that assessee had returned the damaged goods to the creditors and for this reason alone the assessee has not made any payment to such parties. If there was some sort of dispute regarding return of goods and non-payment, then same could have been brought on record, ei .....

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no cessation of liability. Thus, addition has rightly been made by and confirmed by the revenue authorities. Accordingly, ground no. 1 as raised by the assessee is dismissed. 7. In ground no. 2, the assessee has challenged the addition of ₹ 18,41,027/- made u/s 69A on account of cash deposit made in the bank account. 8. The AO, from the perusal of the bank statement filed by the assessee noted that, cash deposits have been made in the bank account maintained with The Sangali Bank Ltd. . Th .....

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he assessee was that, these deposits and withdrawals were on account of business transactions made to the parties for purchases and sale. Therefore, at the most, gross profit or net profit of these deposits / sales should be added. The AO rejected the assessee s contention on the ground that assessee has not given any sufficient proof in support of the contention that the money deposited were actually business receipts. After detailed discussion, he added the entire amount of all credit deposits .....

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ue amount of ₹ 7,77,000/-, which cannot be treated as unexplained If overall amount on debit side and credit entries are to be analyzed then it can be witnessed that assessee has withdrawn total amount of ₹ 15,06,921/- on 29 occasions through account payee cheques in lieu of payment for the goods, suppliers bills. Complete details of cash and cheque deposits as well as withdrawals were furnished. Further, an expenditure of ₹ 27,683/- was also incurred through cheque which was t .....

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supplied and other details, however assessee could not file these details, as noted by the CIT(A), and accordingly, he held that the entire amount of credits were deposited in the bank account should be added. 10. Before us, the Ld. Counsel reiterated the submissions made before the CIT(A) and relied upon various decisions in support of the contention that, in such a situation when contemporaneous debits and credits are there reflecting some kind of transactions or business activities, then add .....

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