TMI Blog2018 (9) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... t be said that the assessee has furnished any inaccurate particulars of his income or concealed income on this issue. With respect to the addition of the sundry creditors, assessee has explained full details about difference between balance as per the books of assessee as well as the information obtained by the AO and reconciled. The assessee has shown that in some of the cases the customer has been billed certain goods which was not accepted by the assessee. In one of the case, the payment made by the assessee was also not recorded. Out of the total four creditors the addition was upheld only with respect to ₹ 177958/-. Though the addition is confirmed by the first appellate authority, but does not show that the assessee has not reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asked to explain the sundry creditors and to verify the same. The ld AO issued notice u/s 133(6) of the Act and found certain difference in the balance of those creditors. The total difference of ₹ 829832/- was found and explanation of the assessee was called for. However , the ld AO made an addition of the above amount. The ld AO passed assessment ordfer u/s 143(3) of the Act on 26.11.2012 determining total income of the assessee of ₹ 1371720/- against the return income of ₹ 3312891/-. The ld AO also issued penalty notice u/s 274 read with section 271(1)(C) of the Act. The assessee preferred appeal before the ld CIT, Muzaffarnagar who partially deleted the addition of ₹ 653002/- on account of creditors and confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , looking at the assessment order passed by the ld AO, it is apparent that there was no satisfaction recorded by the ld AO in assessment order that whether the assessee has concealed income or furnished inaccurate particulars of income. Even in the penalty order dated 10.05.2013, the ld AO has held that the assessee is liable for penalty u/s 271(1)(c) of the Act as assessee has furnished inaccurate particulars of his income and concealed particulars of his income. Therefore, the ld AO is not certain about the exact charge on the assessee. Further on the merits the addition has been made on account of low gross profit on estimated basis. The ld AO has rejected the books of account and estimated the gross profit. However, he did not find any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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