9911796707
TMI Blog2020 (10) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by the AO u/s. 68 of the I.T. Act, 1961 to Rs. 32,51,040/-, when the CIT(A) himself has held that the two parties from whom purchases made by the assessee i.e. M/s. Steel Traders and M/s. C S Corporation are bogus parties and hence the purchases made from these parties including opening balances of earlier years are required to be taxed as per the provisions of section 68 of the I.T. Act, 1961." 2. The assessee in the present case is an individual who is engaged in the business of trading of building material under the name and style of his proprietary concern "M/s. Jaileela Enterprises". The return of income for the year under consideration was filed by him on 30-09-2009 declaring a total income of Rs. 7,68,850/-. In the Balance sheet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The AO, therefore, treated the credit balances appearing in the name of M/s. Steel Traders and M/s. C.S. Corporation to the tune of Rs. 2,82,35,355/- and Rs. 97,81,419/-, respectively in the books of account of the assessee on unexplained/unproved and addition of Rs. 3,80,16,774/- was made by him to the total income of the assessee u/s. 68 of the Act in the assessment completed u/s. 143(3) of the Act by an order dated 26-12-2011. 3. Against the order passed by the AO u/s. 143(3) of the Act, the assessee preferred an appeal before the CIT(A) and since the submissions made on behalf of the assessee before him in order to establish the genuineness of concerned two creditors were not found acceptable by the ld. CIT(A), he confirmed the find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rward from the earlier year. As rightly held by the ld. CIT(A), the same therefore represented credit pertaining to the earlier year and the same could not be added on unexplained cash credits in the year under consideration u/s. 68 of the Act which provides that "where any sum is found credited in the books of assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not in the opinion of the Assessing Officer satisfactory, the sum so credited may be charged to Income Tax as the income of the assessee of that previous year". 5. At the time of hearing before us, the ld. DR has not been able to raise any contention to dispute this position that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
