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TMI Blog2015 (4) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... which means that even after the end of the present accounting year i.e. financial year 2005-06, the creditors were admittedly outstanding for one full year and it may be that the creditors were outstanding for a very long period of time. We fail to understand that whether small raw hide suppliers can afford to provide this long credit and hence, this claim cannot be accepted in the absence of confirmation from supplier and their addresses. We, therefore, reverse the order of CIT(A) on this issue and restore that of the Assessing Officer. - Decided in favor revenue. Expenditure on Land development - We find that a clear finding is given by CIT(A) that the disallowance was made by the Assessing Officer on estimated basis without pointing out any specific item of purchase or expenditure of unverifiable nature or without proper supporting bills and vouchers. This finding of CIT(A) could not be controverted by Learned D.R. of the Revenue and therefore, we do not find any reason to interfere in the order of CIT(A). Accordingly, these grounds are rejected. - Decided partly in favour of revenue. - ITA No.517/LKW/2010 - - - Dated:- 26-2-2015 - Shri Sunil Kumar Yadav And Shri A.K. Ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the paper book. He also submitted that the written submissions are available on pages 1 to 16 of the paper book. He also pointed out that the list of raw hide suppliers is available on pages 182 to 193 of the paper book. It was also submitted that the second set of written submissions are available on pages 168 to 177 of the paper book. 7. We have considered the rival submissions. First of all, we examine the basis of addition made by the Assessing Officer and his precise objections. We find that in Para No. 9 of the assessment order, it is noted by the Assessing Officer that the assessee has shown sundry creditors of ₹ 2,502.57 lacs in the present year as against ₹ 1313.54 lac in the immediately preceding year. Regarding increase in turnover, we find that it is noted by the Assessing Officer in Para No. 4 of the assessment order that during this year, the turnover was ₹ 5882.08 lacs as against turnover of ₹ 5028.23 lacs in assessment year 2005-06 i.e. immediately preceding year. Hence, it is seen that the increase in the turnover is about 16% but the increase in creditors is almost 100%. Therefore, the Assessing Officer asked the assessee to give the det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2005-06, it was noted by the Tribunal that sales in that year were ₹ 5228.23 lac as against sales in assessment year 2004-05 at ₹ 6223.18 lac. But in the present year, the sales are showing normal increase of 15% to 16% but the creditors is showing increase of almost 100%. For this abnormal increase in the amount of creditors for suppliers of rawhide, the assessee was required to bring evidence on record that the goods were in fact purchased on credit. No positive evidence could be brought on record by the Learned A.R. of the assessee before the authorities below or before us to establish that the goods in fact were purchased on credit with regard to creditors doubted by the A.O. on account of failure of the assessee to provide confirmation or even complete address. When all these facts are considered together i.e. abnormal increase in the claim of creditors and the failure of the assessee to provide evidence regarding creditors in the form of confirmation / complete address, it cannot be said that these creditors of ₹ 10,51,948/- for which addition was made by the Assessing Officer on the basis that neither any confirmation was furnished nor any address was gi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in assessee s own case for assessment year 2005-06 and the judgment of Hon'ble Allahabad High Court followed therein having been rendered in the case of Pancham Das (supra) are not applicable and therefore, the assessee do not get any help from these judgments in the facts of the present case. 10. As per the details available on pages 182 to 193 of the paper book, we find that in this detail also, the detail is available party wise without address and without the period of credit and it is also not indicated as to when the payment was actually made and since when the amount is said to be outstanding. Therefore, these details are not rendering any help to the assessee in establishing that the goods were in fact purchased on credit from these suppliers. 11. Regarding the written submissions of the assessee, we find that in these written submissions, the assessee has merely stated the facts, which are already noted by the authorities below and considered by us in above discussion. Reliance was placed on the Tribunal decision in assessee s own case for assessment year 2005-06 and the judgment of Hon'ble Allahabad High Court in the case of CIT, Agra vs. Pancham Das Jain [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een given by the assessee for its failure to obtain confirmation from the suppliers of this amount added by the Assessing Officer, although the assessee has submitted confirmation of ₹ 798.07 lacs. Hence, for this difference in facts, this Tribunal decision is not applicable in the present case. 12. In the second case i.e. in the case of Chang Hing Tannery (supra), entire purchases were disallowed by the Assessing Officer for want of confirmation from the suppliers. In the present case, the facts are different because in the present case, no part of purchases have been disallowed but addition is made on account of creditors shown, which could not be established by the assessee and therefore, this Tribunal decision is not rendering any help to the assessee. 13. As per above discussion, we have seen that in spite of considering the written submissions and other details available in the paper book and also various judgments cited by Learned A.R. of the assessee including the Tribunal decision in assessee s own case for preceding year and also the decision of Hon'ble jurisdictional High Court in Pancham Das (supra), the assessee is not getting any help because the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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