TMI Blog2016 (4) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... account of unconfirmed creditors - Held that:- A reference was made in the impugned order of the CIT-XII to notices issued under Section 133(6) of the Act to the named creditors. The CIT-XII also noted that notices issued to four of the creditors were returned unserved. However, the dates on which the said notices were issued and the dates on which they were returned unserved are not clear. This attains significance since confirmation letters appear to have been issued in November 2011 by those very parties (copies of which have been enclosed with the rejoinder affidavit). Here, again the Court finds that the procedure adopted by the CIT-XII in dealing with the objections of the Assessee is not satisfactory. The CIT-XII appears to have sim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s picked up for scrutiny and by an assessment order dated 29th December 2011 issued under Section 143(3) of the Act, the following four major additions were made by the Assessing Officer ( AO ) to the income of the Assessee: (i) addition of ₹ 37,75,000/- pertaining to the partners capital introduced by the partners; (ii) addition of ₹ 14,45,000/- on account of the cash deposits made on 3rd September, 2008 and 22nd October, 2008 in the account; (iii) addition of ₹ 1,82,07,859/- on account of unconfirmed creditors and (iv) addition made on ad-hoc basis of ₹ 98,447/- being 25% of the expenses disallowed by the AO. 4. According to the Assessee, to avoid possible delays, it withdrew the appeal filed agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... affidavit, it is stated that contents of the remand report, if any, were not brought to the notice of the Petitioner. No opportunity to file any rejoinder to the remand report of the Respondent No.2 was given to the Petitioner. 8. That the remand report was not made available to the Assessee has not been denied by the Respondents. However, it is contended by Mr Dileep Shivpuri, learned Senior standing counsel for the Revenue, that as long as the said remand report was not used against the Assessee, there was no legal requirement to provide a copy thereof to the Assessee. 9. If in fact a remand report was called by the CIT-XII from the AO, there is no reason for the CIT not to have mentioned that fact in the impugned order. The mere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee, on the other hand, is that it produced before the AO a confirmation issued by M/s Enkay Electricals by a letter dated 19th December 201. The said letter has not been referred to by the AO. Further, the details of the conversation on the mobile phone that the AO had with the CA of M/s Enkay Electricals were not provided to the Assessee. 13. In dealing with the above objection of the Assessee, the CIT in the impugned order proceeds on a factually erroneous basis that there was no response to the notice issued to M/s Enkay Electricals under Section 133(6) of the Act. Although in the impugned order the CIT-XII notes that a confirmation letter of M/s Enkay Electricals was produced, it is not discussed. The appropriate course for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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