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TMI Blog2013 (11) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,41,680/-. The case of the assessee was selected by the A.O. for scrutiny and notice was accordingly issued by him u/s 143(2) of the Income Tax Act, 1961 to the assessee on 22-9-2008 fixing the case for hearing on 24-10-2008. The said notice issued by the A.O. as well as subsequent notices issued by him u/s 142(1) of the Act, however, remained un-complied with by the assessee and the A.O. therefore was left with no other option but to complete the assessment ex-parte u/s 144 of the Act to the best of his judgment. In the assessment so completed u/s 144 vide an order dated 21-6- 2010, the A.O. made the following three additions to the total income of the assessee:- "Unexplained/unproved expenditure: On verification of the P&L account:, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 580,000+495083) is added to the total income. Penalty proceedings u/s 271(1)(c) of the l.T. Act are initiated for giving inaccurate particulars/concealment of income. Agricultural income: On verification of capital account, it is seen that the assessee has shown agricultural income at Rs.2,42,6001- which is claimed exempt. However, supporting details are not available on record in respect of the claim and in response to the notices too, u/s 142(1) of the I.T. Act issued calling for the details, the assessee has not filed any details called for after being given ample opportunities for the same. Therefore, it is seen that the assessee as totally failed to discharge his onus on producing details for claim of agricultural income which is clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rthiness of the concerned creditors. He held that since no enquiry was made by the A.O. to prove that the corresponding purchases made by the assessee from the said creditors were bogus, the addition of Rs. 4,95,083/- treating the concerned sundry creditors as unexplained/unproved was not sustainable. He, however, agreed with the A.O. that the onus to prove the identity as well as creditworthiness of the loan creditors was on the assessee and the assessee having failed to discharge the same, the loan amounts were liable to be added to the total income of the assessee as unexplained cash credit. In this regard, he found that out of the total loan amount of Rs. 5,80,000/-, a fresh loan amount received during the year under consideration was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee during the course of assessment proceedings. 3. On the facts and in the circumstances of the case, whether the ld. CIT(A) is right to hold that there is no adverse material available on records so far as sundry creditors are concerned." 4. We have heard the arguments of both the sides and also perused the relevant material available on record. In our opinion, when no legal infirmity was found by the ld. CIT(A) in the order passed by the A.O. ex-parte completing the assessment in the case of the assessee u/s 144 of the Act to the best of his judgment, he agreed that the non-compliance of the assessee to the notices issued by the A.O. during the course of assessment proceedings was not for good reasons. It was also accepted by the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the onus was on the A.O. to prove that the corresponding purchases made by the assessee from the concerned sundry creditors were bogus. In our opinion, the onus in this regard was on the assessee to establish that the concerned creditors were genuine and since this onus was not discharged by the assessee by producing the supporting documentary evidence, we are of the view that this issue also should be restored to the file of the A.O. for deciding the same afresh after giving the assessee one more opportunity of being heard. We order accordingly and allow ground No. 2 of the Revenue's appeal for statistical purpose. 6. In his C.O., the assessee has mainly supported the impugned order of the ld. CIT(A) giving relief to him on the issues inv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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