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TMI Blog2013 (8) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... . had satisfied himself with evidences filed before him. Appellant filed three paper books in this case which includes the copy of computation of income, copy of Audit Report, A.O’s. query letter dated 12.08.2009, reply of the assessee dated 02.09.2009, 11.09.2009, 18.11.2009 & 18.12.2009. The appellant had not filed any reply against the query raised by the AO on fall of G.P. Further confirmation in case of M/s. Umiya Finlease Pvt. Ltd., Somabhai Narayandas Patel & Soma Bhai Narayandas Patel HUF filed before CIT not before the A.O. The bank account in case of Bhagwati (Pvt.) Ltd., Moti Polymers (Pvt.) Ltd., Ambica Marbles Store Suppliers, Bhavna Sales Agency and Motidas Jivandas Patel had not been examined by the A.O. The order of the A.O. to that extent is erroneous and prejudicial of interest of Revenue. However, on other issues the ld. CIT had passed order under Section 263 of the I.T. Act without specific observations. The remarks of CIT are general. The Assessee had filed the confirmation in case of cash creditors, copy of return & copy of bank accounts. The Ld. A.O. had satisfied himself with evidences filed before him - Decided partly in favour of assessee. - ITA No.977 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 6. No reconciliation statement was furnished enabling verification of stock as on 15-02-2007 as per books of accounts and the stock found on physical verification. 7. There is also no reconciliation between the actual stock during the course of survey physically found as on 15-2-07 and the closing stock at the end of the year 31-3-2007. 8. As regards verification of cash credits are concerned, it has been found that in respect of following transaction, no confirmations were filed dully supported by copy of relevant bank account, copy of acknowledgement for filing return of income, P L A/c and Balance sheet. (i) Umiya Finlease Pvt. Ltd. Rs. 15.00.000/- dated 13-10-2006. (ii) Patei Somabhai Narayandas. Rs. 19,300/- dated 20-04-2006. (iii) Patel Somabhai Naryandas HUF. Rs. 19,800/- dated 20-04-2006. 9. In respect of credits Rs. 11,06,916/- in the name of Patel Revabhai Motidas, HUF, it has been found that the gross income for A.Y. 2007-08 has been shown at Rs. 1,65,032/- only, whereas, total receipt of credit is more that Rs. 13,50,000/- during the year, it has been claimed that the assessee was having credit balanced of Rs. 3,18,639/- with Shri P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 29.3.2007 Rs. 484000/- (viii) 19.3.2007 Rs.642780/- (debit) A/c. No. CA 1536. (ix) 30.3.2007 Rs. 464000 to Shri B.A. Patel. Unless, all these entries are properly explained the same cannot be treated as genuine transactions. Moreover, these are transfer to the following SB Accounts. (i) SB A/c.No.9287 Rs.180000/- (ii) SB A/c. No.10590 Rs. 30000/- (iii) SB A/c. No.9209 Rs. 80000/- (iv) SB A/c. No. 9528 Rs. 105000/- (v) SB A/c .No. 9225 Rs. 104000/- . Unless the copies of balance sheet as on 31-03-2006 31-03-2007 are not furnished, the same cannot be treated as genuine transactions. 11. In respect of credits of Rs.1284617 in the name of Shri Narottamdas Motidas Huf, the assessee has shown receipt of Rs. 750000/- during the year under consideration. The income of the assessee is only Rs. 160895/- and the source of deposit is explained as receipt of Rs.500000/- from Smt. Pashiben Ramdas Patel on 20- 04-2006 and Rs.250000/- from Thakore Laxmanji Parjapatiji. In absence of copy of Balance sheet as on 31-03-2006 31-03-2007, the transaction of receipt cannot be treated as genuine as both the tenders are not assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated as explained. 15. In respect of credit of Rs. 40100/-in the name of Shri Maganbhai N. Patel, HUF, the bank account No. 9231 of Dena Bank reveal that there is deposits of draft of Rs. 90000/- on 19-05-2006 and Rs.90000/- on 10-05-2007 which were transferred to A/c. CA 1241. As the source of deposit of Rs. 1,00,000/- is not satisfactorily explained, it cannot be said that the assessee has any regular source of income for which he can advance Rs. 40100/- unless the source of Rs. 40500/- account for the bank account is explained property. 16. In respect of credits of Rs. 350000/- in the name of Patel Kantilal Revab haii, it appears that fund of Rs.350000/- was transferred from the A/c of Patel Motidas Jivandas. The bank account No. 9192 of the creditor reveal credit of Rs.350000/- from Ac. No.CA 1345 on 20-4-2006 and Rs. 500000/- on 25-04-06 which were sent to A/c. No. CA 1241 on 25/4/2006. In absence of copy of A/c. No. CA 1345 CA 1241, the transaction cannot be treated as properly explained. 17. In respect of credit in the name of Kantaben Kantilal Patel, the amount of Rs. 697865/- was shown to have been revealed from SBM dalal by cheque No.634356 and ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of Rs. 531794/- was transferred to A/c. No. CA 1536. In absence of copy of Bank A/c. No. 1536, the credits cannot be treated as explained and genuine. 26. In the account of Shri Patel Amratlal Bhikhabhai the said party has allowed Rs.300000/- on 11.7.2006 and Rs. 340000/- on 6-3-2007. Interest credited is only 12144/-. The rate of interest is not known and in absence of copy of Bank account form which the money has been advanced, the transactions cannot be treated as fully explained and genuine. 27. In the bank account No. 9196 of Ambalal N. Patel, an advanced of Rs. 230000/- was transferred from CA A/c No. 1345 on 29-4-2006 and against there is transfer of Rs. 77888.53 on 4/8/06 from the said account. Thereafter, the fund amount was sent to A/c.No. CA 1241. In absence of copies of aforesaid bank a/cs., the transactions of credits cannot be treated as explained and genuine. 28. The copy of Bank A/c. No.9228 of Shri Ambalal Narrotamdas Patel, HUF, reveal transfer of Rs. 92821 to A/c. No. CA 1536 of Rs. 92821 on 9.3.07. In the absence of copy of said bank account, the transaction of credit cannot be treated as fully explained and genuine. 29. In respect of cop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9.2009 were pertained to whole year not as on date of survey. The ld. A.O. did not make any inquiry for fall in GP. Therefore, it is observed by the CIT(A) that here that no books of account had been properly examined by the A.O. The book results were prima facie accepted by the Assessing Officer without making any verification whatsoever. The reasons for fall of G.P. given by the appellant before the CIT were found in general nature and not supported by any documentary evidence. The contention of the appellant that price increased of the raw material reduced the profitablility whereas no such increase in sale price had been shown by the appellant. On the issue of the cash creditor of M/s. Umiya Finlease Pvt. Ltd., Somabhai Narayandas Patel Somabhai Narayandas Patel HUF, the assessee had furnished confirmation, copy of acknowledgement of return, bank pass book for verification, which were submitted before the CIT(A). Therefore, he held that it required further verification by the A.O. on the issue of cash creditor in the name of different persons discussed at serial nos. 19 to 31 of show cause notice. The assessee had stated to have furnished required details during the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order u/s.263 after giving opportunity of hearing to the assessee. 3. The assessee carried the matter before us. Ld. Counsel for the appellant filed three paper books in this case which includes the copy of computation of income, copy of Audit Report, A.O s. query letter dated 12.08.2009, reply of the assessee dated 02.09.2009, 11.09.2009, 18.11.2009 18.12.2009. The appellant had not filed any reply against the query raised by the AO on fall of G.P. Further confirmation in case of M/s. Umiya Finlease Pvt. Ltd., Somabhai Narayandas Patel Soma Bhai Narayandas Patel HUF filed before CIT not before the A.O. The bank account in case of Bhagwati (Pvt.) Ltd., Moti Polymers (Pvt.) Ltd., Ambica Marbles Store Suppliers, Bhavna Sales Agency and Motidas Jivandas Patel had not been examined by the A.O. The order of the A.O. to that extent is erroneous and prejudicial of interest of Revenue. However, on other issues the ld. CIT had passed order under Section 263 of the I.T. Act without specific observations. The remarks of CIT are general. The Assessee had filed the confirmation in case of cash creditors, copy of return copy of bank accounts. The Ld. A.O. had satisfied himself with evide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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