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TMI Blog2017 (12) TMI 1864X X X X Extracts X X X X X X X X Extracts X X X X ..... of 5% of the expenses claimed in trading account and secondly, the Revenue is aggrieved by the deletion of Rs. 17,07,145/- on account of unexplained unsecured loans. 3. Briefly stated facts of the case are that the assessee is a civil contractor whose return was selected for scrutiny assessment. Inspite of several notices, as exhibited on page no.2 of the Assessment Order, the assessee did not comply with the notices. The Assessing Officer sought certain details from the assessee which were not submitted. The Assessing Officer formed a belief that the expenditure claimed by the assessee in its books of account are not proved. The Assessing Officer further found that there is a fall in the gross profit rate when compared with the profit ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h creditors are trade creditors of the assessee for whom the assessee has done the contract work or who have supplied labourers to the assessee. Having satisfied with the genuineness of the credit, the CIT(A) deleted the addition of Rs. 17,07,145/- 7. Aggrieved by this, the Revenue is before us. The learned Departmental Representative strongly supported the findings of the Assessing Officer. Per contra, learned counsel for the assessee reiterated what has been stated before the lower authorities. 8. We have given a thoughtful consideration to the orders of the authorities below. It is true that the assessee did not file all the details of expenditure during the course of assessment proceedings. It is equally true that all the necessary de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... armar Address: N.A., PAN No.:N.A. Nil No 200,000 Nil (13) Ramaben A. Vaghela Address: N.A., PAN No.:N.A. Nil No 1,965,524 758,004 (14) Pratinj Nagarpalika Work Address: N.A., PAN No.:N.A. 185,000 No 185,000 Nil 10. We have also carefully gone through the copy of ledger account of all the aforementioned creditors. We find that inadvertently the tax auditor has treated the aforementioned persons under the head "unsecured loan" whereas, in fact, all the above persons are "trade creditors" and with whom the assessee has done some contract business including supply of labourers on contractual payments. We find that tax has been deducted at source as per the provisions of law. 11. On given facts, we do not find this to be a fit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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