TMI Blog2022 (5) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... ition on account of outstanding liability pertaining to Prakash Gold is directed to be deleted. As for the liability on account of M/s. Aarti Jewelers, the ld. Counsel for the assessee has contended that the said liability was discharged in the succeeding years through banking channels. Copy of the ledger account of the parties was also placed before us. In view of the same therefore there is no question of holding the said party to be ingenuine and the addition made on this count is directed to be deleted. Appeal of assessee allowed. - ITA No. 1415/Ahd/2019 - - - Dated:- 29-4-2022 - Ms. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Appellant : Shri S. N. Divetia, A.R. For the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lers and Prakash Gold as bogus purchases and thereby confirming an addition of Rs. 25,0,3,321. 2.3 Without prejudice to above, the impugned addition is highly excessive and calls for substantial reduction. 2.1 Ground no. 1 and1.2 it was stated before us by the ld. Counsel for the assessee were general in nature and are therefore not being dealt with by us. 3. Ground no. 2.1 to 2.3, ld. Counsel for the assessee stated related to addition made of Rs. 25,03,321/- on account of outstanding balances of two parties M/s. Aarti Jewelers and M/s. Prakash Gold held to be bogus. The assessment order reveals that the said two parties were included in the list of current liabilities which included sundry creditors and advances as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioning address and PAN. Therefore, this office vide notice u/s. 142(1) and show cause notice requested the assessee to furnish address and PAN of Aarti Jewelers but till dated assessee has failed to furnish the details called as above. Therefore, it is clear that liability of Aarti Jewelers of Rs. 12,98,295/- is nothing but bogus entry shown as sundry creditors to increase the liabilities. In other words the corresponding investment has been made from undisclosed sources. Penalty proceedings are initiated separately u/s. 274 r.w.s. 271(1)(c) of the IT Act for concealment of Income. 5. Considering the above facts, vis- -vis the outstanding balance relating to M/s. Prakash Gold amounting to Rs. 12,05,026/-, the addition having been mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
