TMI Blog2017 (6) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of provision of section 40A(3) of the act.. We have further noticed that the assessee failed to give any satisfactory explanation to justify the payments against purchases made in excess of ₹ 20,000/- each, other than account payee cheques or drafts and failed to furnish any supporting documentary evidences. In view of the above facts and circumstances we do not find any reason to interfere in the detailed finding of the Ld.CIT(A). Introduction of capital from unexplained sources - unaccounted income of the assessee - Held that:- As assessee has introduced fresh capital during the year and has not furnished convincing supporting evidences in respect of introduction of capital. We further find that the source of capital explained by assessee in the form of cash received from Dubai appeared to be inconclusive without involving any banking channel. After considering the detailed findings of the Ld.CIT(A), consequently we could not find any cogent supporting evidences to intrude in the decision of Ld.CIT(A). - ITA No. 240/Ahd/2013 - - - Dated:- 20-4-2017 - Shri Rajpal Yadav, Judicial Member, And Shri Amarjit Singh, Accountant Member For The Revenue : Mr. Albinus Ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of the tranasctions and even the primary information has not been submitted by the assessee. Therefore, the assessing officer has added this entire credit of ₹ 2,71,32,085/- to the income of the assessee on the basis that all these creditors were merely book entry and they have already paid in cash. Aggrieved against the order of the assessing officer, the assessee preferred appeal before the Ld. CIT(A). The ld. CIT(A) has given part relief to the assessee by observing as under:- 3.2 I have considered the ground raised by appellant which is apparently wrong and without any basis. The provisions of section 143(3) of the Act clearly say that the assessment order has to be framed or completed before the statutory date which is 31.12.2011 in the case of appellant. This section nowhere says that the assessment order has to be served on or before 31.12.2011. If the AO has evidence on record that assessment order was passed and dispatched on or before 31.12.2011, it is a perfectly legal order. The date of service of the order does not matter so far as the legality of the order is concerned. In view of this legal position, ground taken by appellant deserves to be dismissed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ITAT Ahmedabad in the following cases. (a) Bholanathpolyfdb (P) Ltd (ITA No. 137 /Ahci. /2U09) (b) Avishkar Processing Mills (P) Ltd (ITA No.3589 to 359l/f-hd.\ /2008) (c) Sun Steel Ltd (2005) 92 IT] (Ahd.) 1126. 5.3 I have considered the facts on the issue and found that the assessee has neither furnished complete details supported with documentary evidences to explain the creditors during assessment proceedings nor the appellate proceedings. He has simply given the general reply and arguments that recovery from debtors could not be made therefore payments were not made to creditors therefore no confirmations could be obtained. But, he failed to explain that why the creditors were found non existence during field inquiry made by inspector or in reply to the notices sent u/s. 133 (6) of the Act. As mentioned in the assessment order, despite of giving many opportunities by AO, assessee failed to reply any of them. If the creditors are shown in the balance sheet and the assessee is enjoying their funds for his own business purposes, onus is on him to establish their genuineness. But, the assessee has failed to discharge his onus. In the light of aforesaid fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the revenue and assessee are dismissed on this issue. Ground No. 2 6. During the course of assessment proceedings, the assessing officer stated that asessee has not submitted required detail as called, therefore, the assessing officer made inquiry from IDBI bank where the assessee was maintaining one bank account. Assessing officer has obtained photocopies of cheques from the bank and found that cheques were not a/c payee and endorsed in favour of third parties other than the names to whom these were issued. The assessing officer noticed that payment made through these cheques were above ₹ 20,000/- towards purchase made by violating provision of section 40A(3) of the act.The assessee failed to provide explanation for the same ,therefore, the assessing officer made addition of ₹ 59,65,729/- u/s. 40A(3) of the act. Aggrieved against the order of the assessing officer, the assessee preferred appeal before the Ld. CIT(A). The ld. CIT(A) has sustained the addition made by the assessing officer by observing as under:- 6.3 I have considered the facts on the issue and legal provisions also. The appellant has failed to give any satisfactory explanation to ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayee cheques or drafts and failed to furnish any supporting documentary evidences . In view of the above facts and circumstances we do not find any reason to interfere in the detailed finding of the Ld.CIT(A). Ground No. 3 8. During the course of assessment proceedings, the assessing officer noticed that assessee introduced fresh capital of ₹ 15,33,000/-during the year. The assessing officer stated that assessee has not furnished the supporting evidences in respect of introduction of capital. Al these payment have been shown to be received in cash. The claim of the assessee that he has received remittance of the salary from Dubai and copy of passport, pay in slip certificate produced in this connection was not found to be satisfactory by the assessing officer. Therefore, the amount of ₹ 15,33,000/- was held as unexplained source as unaccounted income of the assessee. Aggrieved against the order of the assessing officer, the assessee preferred appeal before the Ld. CIT(A). The ld. CIT(A) has sustained the addition made by the assessing officer:- 7.3 I have considered the facts of the issue and submissions of appellant. The source of capital explained b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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