TMI Blog2020 (4) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... IT- A on this issue and restore the same to the file of the AO for examining it afresh. Addition of sundry creditors - assessee did not furnish confirmation letters and also he did not produce the creditors before the AO - HELD THAT:- We noticed from the paper book that the assessee has furnished confirmation letters claimed to have been produced before ld CIT(A). Those confirmation letters are addressed to Ld CIT(A) only. However the ld CIT(A) has observed that the assessee has not furnished the confirmation letters which is contradictory to copies of confirmation letters available on record. In any case the confirmation letters have not been furnished before the AO and hence there was no occasion for the AO to examine this letters. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. The assessee is a civil contractor and he filed his return of income for the year under consideration declaring a total income of ₹ 10.08 lakhs. The assessee has declared income on estimated basis by adopting profit rate of 8%. It is further stated that the assessee has not maintained books of accounts. During the course of assessment proceedings, the AO asked the assessee to furnish statement of affairs as on 31/3/2010 and 31.3.2011, since the assessee claimed before him that he did not maintain any books of accounts. In the statement of total income filed for 31/3/2011 the assessee had shown sundry creditors balance of ₹ 40.00 lakhs. The AO asked the assessee to produce all the creditors. However the assessee could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indly be admitted as additional evidence. He further submitted the cash deposits made into the savings bank account actually represents business receipts partly and some of the deposits have been made out of earlier withdrawals. He submitted that the assessee did not maintain books of account and hence the AO was justified in requesting for fool proof evidences. Accordingly he prayed that this addition may kindly be deleted. 5. On the contrary the ld AR submitted that the assessee has not furnished proper explanations with regard the sources of deposits. He further submitted that the additional evidence furnished by the assessee require verification. 6. Since the assessee has filed additional evidence, we are of the view that this iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record. He submitted that the assessee is a civil contractor and has been dealing with people from unorganized sector, who also did not maintain books of account. Hence they could not also confirm from memory the balances outstanding against their name as on a particular date, since the assessee is having running account and continuous dealing with them. The ld AR relied on a decision rendered by Kolkatta SMC Bench of Tribunal in the case of Mohankumar Agarwal Vs. ITO (ITA No.1750/Kol/2018 dated 8/5/2019) and submitted that no separate addition should be made when income is estimated u/s 44AD of the Act. However we notice that the above said case was related to an assessee to whom the provisions of sec. 44AD was straight away applicable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld CIT(A) has observed that the assessee has not furnished the confirmation letters which is contradictory to copies of confirmation letters available on record. In any case the confirmation letters have not been furnished before the AO and hence there was no occasion for the AO to examine this letters. Accordingly we are of the view that this issue also requires fresh examination at the end of the AO. Accordingly we set aside the order passed by ld CIT(A) on this issue and restore the same to the file of AO for examining it afresh by duly considering the confirmation letters filed by the assessee. While examining this issue, the AO should also keep in mind that the assessee has not maintained books of accounts, income has been declare ..... X X X X Extracts X X X X X X X X Extracts X X X X
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