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TMI Blog2015 (10) TMI 2561X X X X Extracts X X X X X X X X Extracts X X X X ..... highly unjustified in the facts and circumstances of the case hence the declared income is liable to be accepted. 2. That in any view of the matter addition of Rs. 9,80,000.00 made by the assessing officer as per Para 2 of the assessment order by saying liability of trade creditors and his action as confirmed by the Commissioner of Income Tax (Appeals) is highly unjustified and incorrect and even no opportunity was provided to the appellant. 3. That in any view of the matter once the net profit rate was applied by the assessee as per the provisions of section 44AE of the Income Tax Act then no further addition should have been made in respect of trade creditors therefore the addition of Rs. 9,80,000.00 made by the assessing officer and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2,10,000/-. During the course of assessment proceedings the assessee was required to furnish his statement of affairs as on 31.3.2005 and 31.3.2006. The assessee was also required to furnish the cash flow statement from 1.4.2005 to 31.3.2006. These queries of the AO were complied with by the assessee. During the course of assessment proceedings, the AO observed that there was an increase in the fixed assets i.e. trucks during the year and that there was also a substantial increase in the balances in bank during the year. A new liability of Rs. 9,80,000/- was shown as trade creditors in the Balance Sheet on 31/03/2006. Through a specific inquiry by the AO, the assessee was required to furnish complete names and addresses of the trade credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view to provide a mechanism for estimating income from the business of plying of trucks where a person did not own more than 10 trucks. He also drew our attention to a decision of the Hon'ble High Court of Judicature at Allahabad in ITA No. 74 of 2009 in the case of CIT-I, Kanpur vs. Shri Nitin Soni in which the Hon'ble High Court has held that the very purpose and idea of enactment of section 44AE is to provide hassle free proceedings and that such an assessee is not required to maintain any account books. 4. Ld. DR on the other hand supported the order of the Ld. CIT (A). 5. We have considered the rival submissions and perused the material available on record and gone through the orders of the authorities below. We find that the isuse i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on made by the AO is hereby confirmed." 6. From the order of the Ld. CIT (A) we find that a clear finding has been given by him that the assessee had failed to give names, addresses, confirmation, bank statement and transactions details of the creditors. In the absence of these details, the claim of the assessee regarding sundry creditors is not acceptable particularly when there was no such creditor in the year ended on 31.3.2005 and the nature of business is stated to be the same. The AO has also reproduced the cash flow statement on page 3 of his assessment order which shows that against the receipt of Rs. 30.55 lacs, the assessee has shown expenses of Rs. 12.64 lacs resulting in a surplus of Rs. 17.90 lacs against which the assesee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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