9911796707
TMI Blog2014 (11) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... s also no documentary evidence to show that payments made to Mr. Manoj Kumar Jain is at the instruction of M/s Sainatheswar Traders - no bills and vouchers have been produced to prove either the purchase from M/s Sainatheswara Traders, Hyderguda or sale to them - even the assessee has not produced the quantitative details of purchase and sales effected by it during the year - the conclusion drawn by CIT(A) cannot be accepted as it is without proper appreciation of facts and evidences – thus, the order of the CIT(A) is set aside and the matter is remitted back to the AO for fresh adjudication – Decided in favour of revenue. - ITA No. 967/Hyd/2013 - - - Dated:- 22-10-2014 - Shri P. M. Jagtap And Shri Saktijit Dey,JJ. For the Petitioner : Shri B. Ramakrishna For the Respondent : Shri S. Rama Rao ORDER Per Saktijit Dey, J. M. This is an appeal by the Department against the order dated 21/02/2013 of the CIT(A)-V, Hyderabad for the assessment year 2005-06. 2. Solitary issue in the appeal preferred by the department is in respect of deletion by CIT(A) of an addition of ₹ 1,79,85,435 made by AO u/s 68 of the Act. 3. Briefly the facts are, asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the name of M/s Sainatheswara Traders, Hyderguda is maintained in the books of account of assessee but by mistake the same amount is also shown as due to M/s Agastya Agro Ltd. in the list of creditors furnished before AO. It was submitted that as the list was showing two amounts in the same account of M/s Agastya Agro Ltd., assessee prepared letters of confirmation accordingly and sent the same for the signature of creditor company M/s Agastya Agro Ltd. and the said company s official also signed both the confirmation letters without verifying the amounts. As stated by AO in the assessment order, though, assessee was asked to produce complete address of M/s Sainatheswara Traders, Hyderguda, but, assessee did not provide the address of the said party by stating that the said party has supplied goods during FY 2004-05 from Hyderguda premises and the present location is not known. As noted by AO even on enquiry no PAN of M/s Sainatheswara Traders, Hyderguda from the Directory was available nor assessee was able to tell the name of the proprietor or partner of the said concern. From this, AO came to a conclusion that the credit of ₹ 1,79,85,435 remained unexplained as assessee w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited. The amounts were paid through cheques upto June, 2007 till the balance was reduced to Nil. The AO verified all the cheques issued but found only few, the aggregate value of which amounts to ₹ 1,93,467/- credited to his bank account with State Bank of Hyderabad, Bowenpally and ₹ 1,85,000/- credited to the bank account with AP Mahesh Co-op. Urban Bank Ltd. Except these cheques totaling to ₹ 3,78,467/-, all the cheques were credited to the account of Sainatheswera Traders. The learned AR contended that the cheques were issued in favour of Sri Manoj Kumar Jain at the instructions of Sainatheswera Traders. From the above it is clear that: 1) there were purchases from Sainatheswera Traders 2) There was closing credit balance at the end of the previous year 3) There is a mistake in the submission of the details of sundry creditors and 4) The amounts to the credit were paid through cheques in the later years. 6.3 All these factors indicate that the purchases effect from Sainatheswera Traders is not in doubt. Taking all the factors into account, I am of the view that the credits cannot be treated as unexplained. Accordingly, the AO directed to delete t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account, assessee shown the amounts of ₹ 80,55,239 and ₹ 1,79,85,435 relating to M/s Agastya Agro Ltd and also furnished two confirmation letters for the aforesaid amounts from M/s Agastya Agro Ltd. However, when the AO cross verified with the assessment records of M/s Agastya Agro Ltd for the relevant AY, he found that only an amount of ₹ 80,55,239 was outstanding from assessee to M/s Agastya Agro Ltd. When this fact was pointed out to assessee, he came up with a plea that amount of ₹ 1,79,85,435 was actually due to M/s Sainatheswara Traders, Hyderguda and not to M/s Agastya Agro Ltd., which was mistakenly shown as creditor. However, on perusal of the assessment order, it is patent and obvious that assessee has neither produced any confirmation letter nor furnished any details in respect of M/s Sainatheswara Traders, Hyderguda indicating its present address, name of its proprietor/partners and contact details like telephone nos. etc. Even PAN of the said concern was not furnished before AO. From the aforesaid facts, it is clear that in course of assessment proceeding, assessee failed to establish the cash credit by identifying the creditor, proving the cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uda like its telephone no. or any other details to establish its identity. Even the assessee has not produced the quantitative details of purchase and sales effected by it during the year. In these circumstances on what basis, the CIT(A) has come to the conclusion that assessee has effected purchases from M/s Sainatheswara Traders, Hyderguda is not understood. In the aforesaid view of the matter, we are not able to accept the conclusion drawn by CIT(A) as it is without proper appreciation of facts and evidences. However, considering the nature of addition and also assessee s submission that it has entered into business transactions with M/s Sainatheswara Traders, Hyderguda for purchasing and selling pesticides, we are inclined to set aside the impugned order of learned CIT(A) and remit the matter back to the file of the AO to grant another opportunity to assessee to establish its case by producing corroborative evidence. Further, considering assessee s claim that payments were made through crossed cheques, necessary enquiry can be conducted with the concerned banks to ascertain the correct fact. The assessee on its part can also produce confirmation letters either from M/s Sainathe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
