9911796707
TMI Blog2023 (5) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'), dated 08.12.2019. 2. The grounds of appeal raised by the assessee are as follows: 1. The learned Commissioner of Income Tax (Appeals) erred in fact and in law in confirming the factually incorrect action of the Learned Assessing Officer in making addition of Rs.6,66,125/- as unexplained expenditure ignoring the Ledger Confirmation submitted. 2. The learned Commissioner of Income Tax (Appeals) erred in fact and in law in confirming the factually incorrect action of the Learned Assessing Officer in making addition of Rs.11,39,367/- as unexplained expenditure ignoring Ledger Confirmation submitted. 3. The learned Commissioner of Income Tax (Appeals) erred in fact an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined. The assessing officer observed that notice u/s 133(6) of the Act, has been returned by the postal authorities in respect of Maharshi Electronics and Satyam Enterprise. On perusal of the details of sundry creditors, it is noticed that the Maharshi Electronics has provided goods amounting to Rs.6,66,125/- and Satyam electronics has provided goods amounting to Rs.11,39,367/-. However, the assessee has not produced any satisfactory documentary evidence of genuineness of the creditors. Therefore, a show cause notice was issued by the assessing officer to the assessee on 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lternatively be verified from the invoices, bank statements showing payment entries etc. Therefore, ld Counsel stated that assessee has submitted enough documents and evidences to prove the genuineness of the transaction, hence addition made by the assessing officer may be deleted. 8. On the other hand, the Ld. DR for the Revenue has primarily reiterated the stand taken by the Assessing Officer, which we have already noted in our earlier para and is not being repeated for the sake of brevity. 9. We have heard both the parties and carefully gone through the submission 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived during 2016-17 the purchase is not recorded in books by the assessee. In case of the second party M/s. Maharshi Electronics, the ledger confirmation is in full conformity with the transactions recorded in books. The assessee has also submitted that in absence of the confirmations, the transactions of expense and purchases and their genuineness can alternatively be verified from the invoices, bank statements showing payment entries. The Ld. Counsel further submitted that during the assessment stage, assessee submitted confirmations, PAN number, name and 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 ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respectively. Both the additions pertain to differential amount of balance as compared to Ledger Confirmation of the Parties. The Learned Counsel for the assessee took us through paper book page no.73 and explained that these small amounts were opening balances which were coming from the previous years. The Assessing Officer made addition during the assessment year under consideration, which is wrong and not sustainable in the eye of law. However, nevertheless Ld. DR for the Revenue relied on the order of the Assessing Officer. 12. We have heard both the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
