TMI Blog2022 (1) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... ed before Ld. CIT(A) as additional evidences. Thus, we are of the view that there was reasonable cause for the assessee in not producing those letters before the A.O. Accordingly, in the interest of natural justice, we admit the additional evidences. Since these evidences require examination at the end of the A.O., we set aside the order passed by ld. CIT(A) on this issue and restore the same to the file of the A.O. for examining it afresh. Disallowance u/s. 40A(3) - HELD THAT:- We notice that the assessee has agreed for this disallowance before the AO - Accordingly, the Ld. CIT(A) also confirmed the disallowance. Before us, the assessee could not furnish any material to controvert the addition made by the A.O. It was also not shown to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O completed the assessment by making additions listed above. The appeal filed before Ld. CIT(A) was also dismissed. Hence the assessee has filed this appeal before us. 3. The first issue relates to addition made u/s. 41(1) of the Act. During the course of assessment proceedings, the A.O. noticed that the assessee has declared sundry creditors balance of ₹ 3,64,17,892/- in her balance sheet. The A.O. asked the assessee to submit confirmation letters from the creditors having closing balance of more than ₹ 5 lakhs. In some cases, the A.O. also issued notices u/s. 133 (6) of the Act. There were replies from some people and no reply from others. The assessing officer took the view that the sundry creditors balance of parties from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R.S. Granites Exports 1610157 Returned unserved with new address 1610157 9 Sri Shiva Granites 598680 (dr) No Reply 598680 10 Stone World Granites 557685 0 557685 11 S.V.G. Exports Pvt. Ltd. 1312867 876208 436659 4. Before Ld. CIT(A), the assessee furnished confirmation letters obtained from the above said creditors as additional evidences. However, the Ld. CIT(A) refused to admit the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see in not producing those letters before the A.O. Accordingly, in the interest of natural justice, we admit the additional evidences. Since these evidences require examination at the end of the A.O., we set aside the order passed by ld. CIT(A) on this issue and restore the same to the file of the A.O. for examining it afresh. 8. The second issue contested by the assessee relates to disallowance made u/s. 40A(3) of the Act amounting to ₹ 2,93,865/-. We notice that the assessee has agreed for this disallowance before the A.O. Accordingly, the Ld. CIT(A) also confirmed the disallowance. Before us, the assessee could not furnish any material to controvert the addition made by the A.O. It was also not shown to us that the addition was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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