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TMI Blog2014 (4) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... tement of a partner alone cannot form the basis for any addition, but corroborative evidence has to be found to make and sustain an addition - In the absence of any corroborative evidence, the statement of a partner alone cannot form the basis for making the addition – Decided in favour of Assessee. Difference in sundry credits – Documentary evidences not considered - Held that:- The issue also should be remitted back to the AO for verification of the assessee's contentions and if it is found that it is a double addition and is on account of a mistake occurring in the books of account, then the AO is directed to delete the addition – Decided in favour of Assessee. - ITA No. 1359/Bang/2012 - - - Dated:- 7-3-2014 - Smt. P. Madhavi Devi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case are that the assessee is a partnership firm doing the business of trading in coconut and copra. For the relevant assessment year, the assessee filed its return of income declaring total income of Rs.9,930/-. Initially the return was processed u/s 143(1) of the Income-tax Act,1961 [hereinafter referred to as 'the Act'] accepting the returned income resulting in a refund of Rs.41,176/-. Subsequently the return was selected for scrutiny. The Assessing Officer (AO) called for the books of account and other details relating to computation of income of the assessee. The assessee filed the necessary details as well as its books of account. On perusal of the said documents, the AO found certain discrepancies relating to (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing authority and therefore the same may also be considered to verify the veracity of the claim of hamali charges and loading charges. He submitted that neither the AO nor the CIT(A) has looked into the claim of the assessee with regard to the Acquittance Register but has simply made an ad hoc disallowance of 50% of the claim of hamali charges and local loading charges, which is not justified. 6.1 The learned Departmental Representative, on the other hand, supported the orders of the authorities below and submitted that the assessee is supposed to maintain bills and vouchers for all the expenditure claimed by him and since the assessee has failed to avail the opportunity of producing the relevant documents before the authorities bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on record any evidence in support of such addition. It is now a settled position that the statement of a partner alone cannot form the basis for any addition, but corroborative evidence has to be found to make and sustain an addition. In the absence of any corroborative evidence, we hold that the statement of a partner alone cannot form the basis for making the addition. This addition is accordingly deleted. 8. As regards ground No.4 relating to difference in sundry creditors, the learned counsel for assessee submitted that it is on account of reciprocal mistake in the books of account and the authorities below have failed to consider the contentions of the assessee and made the addition which amounts to double addition. After heari ..... X X X X Extracts X X X X X X X X Extracts X X X X
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