9911796707
TMI Blog2017 (5) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... /- in respect of sundry creditors shown by the Appellant observing that the Appellant has failed to prove the same on the facts and circumstances of the case. 3. The learned CIT (Appeals) ought to have appreciated that documents and books of account have been destroyed due to fire in the premises of the Appellant and hence the Appellant could not furnish the same and also sufficient opportunity was not given to the Appellant to collect the details from the trade creditors of the Appellant and accordingly the disallowance as confirmed by the learned CIT (Appeals) is bad in law. 4. The learned CIT (Appeals) erred in confirming the part disallowance as made by the assessing officer without appreciating the fact that the expenditure was inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the balance of Rs. 1,54,93,861/- as unexplained income of the assessee. The assessee preferred an appeal before the CIT(A) with the submission with regard to the disallowance that the books of accounts were lost in fire during the course of assessment proceedings. Further, during the course of hearing of the appeal, the assessee has filed the confirmation letters from the 11 sundry creditors. These confirmations were sent to the AO for examination in remand proceedings and the AO also obtained independent confirmations also from them. Out of the 11 creditors, the AO found that in 8 cases, the transaction balance outstanding as shown by the assessee matched with the replies of the creditors. Accordingly, the CIT(A) directed the AO to acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing at page Nos. 63 to 68 of the compilation of the assessee. In the confirmation letter and the details of transactions, the closing balance or the outstanding dues appears to be Rs. 32,92,585.97/- against the credit balance of Rs. 31,91,585/-. Though the figure did not match, but the outstanding dues in the books of accounts of the creditor is more than the amount shown by the assessee. But only for these reasons, the genuineness of the credit cannot be doubted and the addition of the whole amount cannot be made. 6. The learned counsel for the assessee further invited our attention to the confirmation letter of M/s. Orson Chemicals appearing at page No. 77, according to which the outstanding dues from the assessee was of Rs. 8,94,368/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the confirmation letters, the CIT(A) called for a remand report from the AO. The AO further examined the confirmation letters filed by the assessee and also by calling independent confirmation letters. He accepted the 8 credits but made the addition on the remaining creditors. The CIT(A) accepted the remand report and made addition of Rs. 30,87,616/-. The observations of the CIT(A) while making additions are as under: "Only in the following three cases the details varied as evident from the following table - Sl. No. Name of Creditor Credit balance claimed by assessee Balance confirmed by creditor 1 Colourtech Product Pvt. Ltd., Rs.31,91,585 Rs.21,84,194 2 Orson Chemicals Rs.8,91,368 Company Closed 3 S & S Polymers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statement of transactions in the books of accounts of M/s. Colourtech Product Pvt. Ltd. They are disbelieving the confirmation letters on account of slight variation in the figures. But according to us, this cannot be a ground for rejection of confirmations as it is a trade transaction. 11. With regard to outstanding balance of M/s. Orson Chemicals, our attention is invited to the confirmation letter of M/s. Orson Chemicals available at page No. 77 in which it has been mentioned that M/s. Orson Chemicals have confirmed the amount outstanding as per record is Rs. 8,94,368/-, against the credit balance of Rs. 8,91,368/-. Since it is a trade credit, the genuineness of credits cannot be doubted on account of slight difference. Our attention wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
