9911796707
TMI Blog2013 (4) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been brought on record relating to the issue are that the assessee is a contractor filed its return of income of Rs.5,52,220. During the course of assessment proceedings u/s.143(3) the Assessing Officer obtained information u/s.131 by issuing summons to the ITO, Rayagada Ward, Rayagada to verify the genuineness of the transactions made by the assessee with M/s.Parvati Agencies, Rayagada. The ITO furnished the ledger copy of account regarding the transactions made by the assessee with M/s.Parvati Agencies, Rayagada when the Assessing Officer found that the said M/s.Parvati Agencies, Rayagada had shown Rs.1,53,551 less amount owed by the assessee than what the assessee had shown. The assessee could not explain or reconcile the difference b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of taxation in the hands of the assessee. He submitted the copies of reconciliation to that effect. He submitted that the learned CIT(A) misinterpreted the noting of the Private Limited Company when no such company existed was only a method of accounting of the said creditor of purchase and sale transactions on account of crusher were maintained separately by the creditor when the total of the debits and credits in the assessee's books of account tallied with that of consolidated ledger copies of two different parties in M/s.Parvati Agencies, Rayagada . Therefore it was not a case for taxation insofar as the loan creditor had explained the credit in their books and not that they had adjusted the same against cash. He prayed that the amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer has brought to tax the same insofar as the information from the ITO, Rayagada flowed in respect to the assessee only and not because the Private Limited Company, which never existed, is only a method of acknowledging that the different items sold by M/s.Parvati Agencies, Rayagada was to be acknowledged by the assessee on payment against purchases on account of crusher and otherwise. In this view of the matter, the Assessing Officer therefore, erred in holding a view that the sum of Rs.1,53,551 should be added in the hands of the assessee as unexplained cash credit when the Assessing Officer has accepted the purchases in accordance with the credit given by the assessee to M/s.Parvati Agencies, Rayagada was recorded by M/s.Parvati Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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