TMI Blog2023 (5) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... indings and discernable line of reasoning, in order to arrive at a conclusion and to make the addition. We note that assessing officer has not refuted or discredited these evidences and documents. On the contrary, the assessing officer has just brushed aside these evidences without even a word on why they are not acceptable. It is a well settled Law that when an assessee has all the possible evidence in support of its claim, they cannot be brushed aside based on surmises. Decided in favour of assessee. Differential amount of balance as compared to Ledger Confirmation of the Parties - HELD THAT:- These additions are opening balances coming from the previous year, therefore these two amounts did not pertain to assessment year under co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Rs.11,39,367/- as unexplained expenditure ignoring Ledger Confirmation submitted. 3. The learned Commissioner of Income Tax (Appeals) erred in fact and in law in confirming the action of Learned Assessing Officer in making addition of Rs.24,905/- as differential amount of balance as compared to Ledger Confirmation of the Party. 4. The Learned Commissioner of Income Tax (appeals) erred in fact and in law in confirming the action of Learned Assessing Officer in making addition of Rs.17,885/- as differential amount of balance as compared to Ledger Confirmation of the Party. 5. Your Appellant craves the right to add to or alter, amend, substitute, delete or modify all or any of the above grounds of appeal. 3. Ground N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01/12/2019 and stating that why the purchases made in respect of above entities should not be added to the total income. 5. In response, the assessee had submitted only a comparative chart of creditors with the assessee's books and party's books. Further, the assessee did not produce any documentary evidences regarding bills, ledger of the assessee in the books of creditors etc. On verification from Gujarat State commercial tax department website, the dealer, Satyam enterprise was found listed as a defaulter dealer. Thus, it was evident to the assessing officer that the assessee has failed to submit confirmation from the above two parties and therefore, he had failed to prove the primary onus of establishing the genuineness of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials brought on record. We note that Ground Nos. 1 and 2 raised by the assessee relate to addition of Rs.18,05,492/- as unexplained expenditure. The A.O. in his assessment order has observed that notice u/s 133(6) of the Act was issued to the sundry creditors to verify genuineness and to cross verify sundry creditors/purchasers shown, outstanding in the balance sheet of the assessee as on 31.03.2017. We note that some of the creditors have replied to the assessing officer, however, two creditors could not reply to the assessing officer, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... address of the parties and the ledger account of parties, therefore, if the AO has any doubt about the genuineness of the purchases made from these creditors/parties, he could have verified from the assessing officer of these creditors. We note that assessee had furnished before the assessing officer the invoices, bank statements and payment details in respect of expenditure/ purchases made from these two parties and assessing officer did not find any mistake in these documents and evidences. The assessing officer has not refuted or discredited these documents and evidences. That is, assessing officer does not mention in his assessment order that why he is not accepting these evidences and documents. The AO ought to have examined all these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties and gone through the assessee`s paper book at page no.73, and noted that these additions of Rs.24,905/- and Rs.17,885/- respectively are opening balances coming from the previous year, therefore these two amounts did not pertain to assessment year under consideration. The principle of taxation is that right income should be taxable in the right assessment year and we note that these two additions made by the assessing officer do not pertain to assessment year 2017-18, under consideration, therefore we delete these additions. 13. In the result, ground Nos.3 and 4 raised by the assessee are allowed. 14. In the combined result, appeal filed by the assessee is allowed. Order pronounced on 23/05/2023 by placing the result on t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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