TMI Blog2023 (12) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee right from the beginning clearly and categorically took their stand that no notice during the assessment was received thus they have no opportunity to file such evidence before the AO. However in the case of CIT Vs Ranjit Kumar Choudhary [ 2006 (11) TMI 144 - GAUHATI HIGH COURT ] and N.B. Surti Family Trust [ 2005 (10) TMI 27 - GUJARAT HIGH COURT ] the evidences were filed for the first time without disclosing any reason, therefore, in our considered view, the ratio of those decisions are not applicable in the facts of the present case. Pas per our direction, at the time of conclusion of hearing assessee filed confirmation of creditors and the part payment received by them in subsequent assessment year. Such fact is otherwise was accepted by assessing officer in his remand report. Appeal of revenue is dismissed. - Shri Pawan Singh, Judicial Member And Dr. Arjun Lal Saini, Accountant Member For the Department : Shri Ritesh Mishra, CIT-DR For the Assessee : Shri Mehul Shah, C.A. ORDER UNDER SECTION 254(1) OF INCOME TAX ACT PER: PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by the Revenue is directed against the order of learned Commissioner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, entire current liability of Rs. 3.47 crores was added back to the total income of assessee. The Assessing Officer also made 20% of disallowance of various expenses. The assessee claimed expenses of Rs. 81,965/- out of which Rs. 16,393/- being 20% was disallowed for want of details. 3. Aggrieved by the additions in the assessment order, the assessee filed appeal before the ld. CIT(A). Before the ld. CIT(A), the assessee filed detailed statement of facts and written submissions. In the statement of fact, the assessee stated that their firm was incorporated on 28/01/2015 and remained in operation for two months only in the respective year. The assessee was engaged in trading activities of polished diamonds during the year addition was made on account of outstanding current liability i.e. trade liability of Rs. 3.47 crores in absence of explanation. The assessee in its submission submitted that they have not received any notice during the assessment, hence, they were unable to file reply. The assessee came to know about the initiation of show cause notice from his auditor on telephone that notices have been issued against them. On receipt of such information, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee was asked to furnish details regarding sales and purchases, bank statement and expenditure. The Assessing Officer reported that no expenditure voucher or bills of expenses were found and vouchers are self-made and without full name and address of the persons to whom such payments were made. The Assessing officer reiterated his contention that additional evidence may not be considered and addition made by him may be upheld. In response to such remand report, the assessee filed his rejoinder. In the rejoinder, the assessee submitted that the Assessing Officer has made further enquiry and issued notice under Section 133(6) of the Act to sole debtor and creditor appearing in their books. Notices were duly served and were responded which was duly received in the office of Assessing Officer in the time period provided. The assessee further submitted that enquiry conducted by Assessing Officer in pursuance of direction under Section 250(4) r.w. Rule 46A should be given equal or more weightage. The Assessing Officer has of the Act made any comment on the documents furnished to him during the enquiries made by him. The assessee has explained non-submission of document during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessee, both the remand reports and reply thereof admit the additional evidence by taking a view that the additional evidences are admitted for the interest of principles of natural justice. On merit of addition, the ld. CIT(A) recorded that he has examined the details and documentary evidences forwarded by the Assessing Officer. The ld. CIT(A) noted that the entire outstanding balance is towards Takshila Exim Pvt. Ltd. against four purchases. The purchase invoices, ledger account is filed which are verifiable. The ld. CIT(A) further noted that some amounts were paid in the next year and it could be ascertained that the assessee continued to them transaction with supplier in next years too. Prima facie, no defect or short coming is to warrant such addition. The genuineness of purchases are not doubted. The Assessing Officer has accepted trade result and only 20% of expenses were disallowed. The ld. CIT(A) further held that the addition of outstanding trade creditors in treating as unexplained cash credit is not correct as per law. The outstanding trade creditors balance are the result of purchase transactions. The assessee has not received any money from these creditors. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e details before the ld. CIT(A) as recorded in para 7 of his order. On furnishing such evidence, the Assessing Officer was directed to furnish his remand report. In the first remand report, the Assessing Officer has not given any adverse remark against the admissible evidence, except objecting the admission of additional evidences. Rather the Assessing Officer accepted that seller and purchaser parties responded and furnished required details which goes to prove that transaction of assessee are genuine. The sales of assessee was not disputed. The ld. CIT(A) on filing reply to the remand report, sought second remand report from the Assessing Officer. The Assessing Officer has not again doubted the transaction of sale and purchase rather took the similar objection that no such details were furnished during the original assessment. When the evidences filed by assessee is not discarded nor any adverse comment on such evidence was given by the Assessing Officer rather the Assessing Officer accepted that sellers and purchaser party responded and filed required details. The ld. CIT(A) granted relief on his complete satisfaction that in subsequent year, the assessee discharged some liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X
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