9911796707
TMI Blog2015 (9) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of unexplained liabilities of Rs. 22,02,879/-, even when the appellant had furnished copy of confirmation letters from creditors. 2. That the learned CIT(A) further erred in law and on facts in upholding the addition of Rs. 1,66,968/- u/s. 40A(3) of the IT Act." 2. Facts in brief as emerged from the corresponding assessment order passed u/s.143(3) dated 23.03.2012 were that the assessee in individual capacity is in the business of trading in ferros and non ferros metals. It was noticed by the AO that under the head "sundry creditors" there was a huge amount of Rs. 52,88,932/- shown in the accounts of the assessee. The assessee was asked to furnish the complete names and addresses and addresses of all the creditors. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er sheet entry dated 25-11-2009, the Authorized Representative of the assessee was show caused to explain as to why the liabilities in the names of above three creditors should not be treated as unexplained liability without considering payment of Rs. 1,70,000/- actually paid to M/s. Manidhari & Co and why the same should not be added to the income declared by the assessee. The reply to the show cause was required on 30-11-2009. It was also categorically mentioned in the note sheet dated 25- 11-2009 that in case assessee fails to produce confirmation of above creditors why creditors' balance remained to be confirmed should not be added to the income of the assessee. Though the Authorized Representative of the assessee attended on 04-12- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eteness relevant paragraph is reproduced below: "2.3 I have given careful consideration to submission made and evidence brought on record by the Assessing Officer. It is undisputed that documents/confirmation as required by the Assessing Officer were not filed. It is argued that these documents/evidences were not produced before the Assessing Officer because sufficient time was not provided. This contention is against the facts on record. The assessment order is dated 23.12.2009. Final show cause was issued on 25.11.2009. This means that preliminary queries were raised much earlier. Assessment was framed one month after the final show cause notice. There is no merit in this contention that sufficient time was not given. Before me confirmat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um of Rs. 1,70,000/- was credited which in fact belonged to an another party. He has pleaded that during the year purchases were to the tune of Rs. 75,16,549/-, therefore, the outstanding balance was reflected in the accounts of these parties. Although he has objected that there was no invocation of the provisions of Section 41(1) of IT Act but also drawn our attention that the AO had doubted the authenticity of the creditors and taxed the impugned amount on the ground that the liabilities did not exist. 5. From the side of the Revenue, learned Sr.D.R., Mr. M.K. Singh has supported the order of the authorities below. 6. Having heard the submission of both the sides, we are of the considered opinion that as far as the accounts of M/s. Bhag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther this amount was squared up by making payment in any of the subsequent years. In the absence of suitable evidence on record, so as to satisfy our above query, we hereby deem it proper to refer this part of the dispute back to the stage of the AO to inquire from M/s. Akshar Enterprises about the nature of the outstanding liability and whether the assessee has squared up the account by making the payment. Naturally if the liability is in existence then it should have been paid by the assessee for which a satisfactory explanation should be offered with supporting cogent evidences. With these directions, this part of the ground is restored back to AO for re-adjudication as per the directions. Resultantly, Ground No.1 of the assessee is part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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