9911796707
TMI Blog2012 (11) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of unexplained credits and Rs.85,751/- in respect of interest thereon and balance addition was confirmed Addition u/s. 69B of the Income-tax Act - assessee is engaged in the cheque discounting business – Held that:- Transaction had been recorded on the next working day when the payment was made on earlier working day after the business hours - assessee had submitted the explanation which is rightly accepted by Ld. CIT(A) since the assessee had given the cash after the business hours or on Saturday and accordingly the transactions have been entered on the next working day. The explanation has been substantiated from various documents submitted by the assessee - addition deleted Addition made by estimating the commission income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing interest payments to non genuine cash creditors. 3. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.21,03,002/- made u/s. 69B of the Income-tax Act. 4. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs.5,00,000/- made by estimating the commission income u/s. 145 of the Income-tax Act. 5. On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have upheld the order of the A.O. The assessee has raised the following grounds of appeal:- ITA No.2215/Ahd/2005. (1) The order passed by the Hon ble C.I.T.(A)-IX, Ahmedabad on 29.08.2005 confirming the addition of non-genuine deposit amounting to Rs.13,29,498/- as non-genuine cash credit is wholly illegal, un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 98/- as unexplained and added to the income of the assessee. 3. Before the Ld. CIT(A) the assessee filed a chart indicating details i.e. date of payment, some addresses of the depositors and made a request that AO may be asked to conduct the inquiries because assessee was not in a position to contract these parties. The AO sent the entire papers along with submissions to the AO who submitted the report vide letter dated 27-06-2005. 4. In the remand report, the AO submitted that there were 79 cash creditors out of which name of one cash creditor was not mentioned and summons u/s.131 to 78 persons were issued through registered A/D. Summons on 49 persons remained unserved, summons on 14 persons were served but not attended. Only two perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case on record. In the present case, the assessee has provided to the Ld. CIT(A) the date of payment by the parties to the assessee and the addresses of the parties and made a request to conduct the inquiries by the Assessing Officer and the same was done. The assessee was given an opportunity to comment upon the remand report which was availed by the assessee and the same was taken into consideration by the Ld. CIT(A). The argument made by Ld. counsel of the assessee that the assessee had not been provided opportunity to contract the creditors or to make further efforts cannot be accepted since the AO had issued summons only at the addresses provided by the assessee. The assessee has not made any effort thereafter in the remand proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash withdrawal from the banks against the clearing of such chequs are neither true nor correct, hence the same was not acceptable. Enquiries were carried out with the following parties who has been shown in the books of account of the assessee as discounting parties:- 1. M/s. Prem Trading Co. Old Market Yard, Himatnagar 2. M/s Imam Trading Co. Old Market yard, Himatnagar 3. M/s N.H.Parmar,Medatiya, Himatnagar 4. M/s J.K. Sales Corporation, Himatnagar, 5. M/s. J.K. Transport The statement of the above persons were recorded u/s.131 of the Act and assessee was given opportunity to cross-examine these persons if the assessee is disagreeing with the fact stated by the below mentioned persons. 1. Bhupendra M. Patel, P/A holder of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given the cash after the business hours or on Saturday and accordingly the transactions have been entered on the next working day. The explanation has been substantiated from various documents submitted by the assessee. Therefore, we find no infirmity in the order of Ld. CIT(A) who has rightly deleted the addition made by Assessing Officer. Thus, ground No.3 of Revenue is dismissed. 10. As regards ground No.4 of the Revenue the brief facts are that the assessee had shown the cash payment to various parties against cheque discounting. The Assessing Officer was of the view that it is not possible for him to deduce accurate income and therefore on show-cause given to the assessee he rejected the books of account u/s 145(3) of the Act. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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