TMI Blog2017 (7) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... icer shall decide the issue as per law and fact after giving due opportunity of being heard to the assessee. - ITA No.117/PN/2011, And ITA No.150/PN/2011 - - - Dated:- 4-11-2016 - SHRI R.K. PANDA, AM AND SHRI VIKAS AWASTHY, JM For The Assessee : Shri M. K. Kulkarni For The Department : Shri P. L. Kureel ORDER PER R.K. PANDA, AM : These are cross appeals. The first one is filed by the assessee and the second one filed by the Revenue and are directed against the order dated 25.11.2010 of the CIT(A), Aurangabad relating to assessment year 2005-06. 2. The appeal filed by the assessee was earlier dismissed by the Tribunal for non-appearance. Subsequently, the Tribunal vide MA No.68/PN/2012 order dated 23.11.2012 recalled the earlier order. Therefore, the appeal filed by the assessee is recalled. ITA No.150/PN/2011 (Revenue) : 3. Ld. Counsel for the assessee at the outset submitted that the tax effect in the grounds raised by the Revenue is below ₹ 10 lakhs. In view of the CBDT Circular issued from time to time raising the monetary limit for filing the appeal by the Revenue, the appeal filed by the Revenue is not maintainable and therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nies have been received. In response to the same, the assessee furnished ledger extract appearing in the books of the assessee of the said party. On an analysis of this ledger account, the Assessing Officer noted that there is credits to the extent of ₹ 37,00,000/- on two different dates i.e. 19.07.2004 and 22.07.2004. In absence of any details filed by the assessee regarding creditworthiness of the said creditor and non-production of the said creditor for his examination, the Assessing Officer invoking the provision of section 68 made addition of ₹ 35,00,000/- being the amount shown as credit in the name of Shri Prakash Basrani in the books of the assessee. 9. Before the CIT(A), it was submitted that Shri Prakash Basrani is proprietor of M/s Raj Metals, having Head Office at D-34, Near Bus Stand, Kolhapur and branch office at Opp.Hotel, Ambar, Near Post Office, Jalna. The creditor has effected sale and purchase transactions of scrap and MS Bars with the assessee. The amount paid to and received from Shri Prakash Basrani are advances for purchases and advances received for sale. The assessee filed the Xerox copy of the PAN Card and statement of account which was file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etary concerns standing in the books of the appellant. The appellant has failed to prove the same in view of the following facts/findings of the A.O. i) The said creditor Shri Prakash Basrani was not produced before the A.O. for verification ii) Shri Prakash Basrani has not reflected the amounts receivable from the appellant in the returns of income filed. Even the transactions/business of trading scrap/CTD bars under the name of style of M/s.Raj Metals and M/s.Hari Om Steels were not show in the returns of income filed. iii) The Sales Tax Registration Numbers appearing in the bills of M/s.Raj Metals is found to be non-genuine and the same belonged to Shri Sunil Arjundas Basrani, Prop. of M/s.Raviraj Marketing Sales, Kolhapur. The Sales Tax Officer communicated that M/s.Raj Metals and M/s.Hari Om Steels are not registered under Sales-tax and M.V.A.T. upto the date. iv) Shri Prakash Basrani is an employee of the appellant and his financial position is not sound to permit him to carry on business of steel/scrap trading. v) The appellant has not rebutted the various facts pointed-out and the contentions raised by the A.O. in the remand report in her cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non-production of Shri Prakash Basrani before the Assessing Officer is concerned, he submitted that, if an opportunity is given he will produce the said person before the Assessing Officer. He accordingly submitted that the matter may be set-aside to the file of the Assessing Officer with a direction to give an opportunity to the assessee to produce Shri Prakash Basrani before the Assessing Officer. 13. Ld. DR, on the other hand, while supporting the order of CIT(A) submitted that he has no objection if the matter is set-aside to the file of the Assessing Officer with a direction to the assessee to produce Shri Prakash Basrani for examination by the Assessing Officer. 14. We have considered the rival arguments made by both the sides, perused the orders of the Assessing Officer and the CIT(A) and the Paper Book filed on behalf of the assessee. We find the Assessing Officer made addition of ₹ 35,00,000/- u/s.68 of the I.T. Act, 1961 being the amount received by the assessee from Shri Prakash A. Basrani on the ground that the assessee was unable to prove the identity and capacity of the said person to give such huge amount and the genuineness of the transaction. We find th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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