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TMI Blog2013 (12) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... ed its return of income for the assessment year 2007-08 on 31.10.2007 admitting Nil income. The case of the assessee was selected for scrutiny. Notice under section 143(2) was issued on 15.09.2008. The Assessing Officer vide assessment order dated 21.12.2009 made addition to the tune of Rs. 48,70,913/- on account of unexplained trade creditors under section 68 of the Income Tax Act. Aggrieved against the assessment order, the assessee preferred an appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee by granting benefit of double addition made during the assessment proceedings to the tune of Rs.1,08,058.20/-. However, the CIT(A) sustained the remaining addition. Aggrieved against the order passed by the CIT(A), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee contended that the Assessing Officer cannot made addition merely on the basis of the fact that some of the creditors who have received notices have not sent confirmation letters. No effort was made by the Assessing Officer to serve such creditors again. The counsel for the assessee placed on record a copy of the return for the assessment year 2007-08 along with trading profit and loss account for the period from 1.4.2006 to 31.3.2007. He pointed out that in the Balance Sheet as on 31.3.2007 there were trade creditors to the tune of Rs. 25,54,205/- in the previous assessment year and Rs. 56,86,924.30 in the assessment year 2007-08. 5. On the other hand, Shri Shaji P. Jacob appearing on behalf of the Revenue submitted that majority o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that out of total trade creditors of Rs.56,86,924/- confirmation letters were received only from the trade creditors to the tune of Rs.9,70,524/- . With regard to 20 trade creditors having an amount of Rs. 22,02,349/- , notices sent were returned by the postal authorities with the remark "no such farm / addresses" and there were 14 trade creditors having amount of Rs. 15,53,815/- to whom notices were served but they failed to file any confirmation letters. As regards other trade creditors either the addresses were not furnished or have denied any business relationship with the assessee. A perusal of the order of the CIT(A) shows that the assessee has not filed any fresh list with complete and correct addresses of trade creditors which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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