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TMI Blog2012 (9) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... ting the addition of ₹ 10,00,000/- on account of stock surrendered during the course of survey conducted u/s. 133A. ii) On the facts and circumstances of the case, the Ld. Commissioner of Income Tax (A) has erred in deleting the addition of ₹ 40,44,492/- on account of bogus sundry creditors. iii) The appellant craves leave to add, alter or amend any / all the grounds of appeal before or during the course of hearing of the appeal. 3. Apropos issue of addition of ₹ 10 lacs on account of excess stock surrendered during search. On this issue Assessing Officer observed that a survey u/s. 133A was conducted and during the course of survey the assessee surrendered an amount of ₹ 10 lacs on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic discrepancy has been pointed out by the Assessing Officer in the trading account. All the purchases and sales were duly accepted. The books of accounts were stated to be duly audited and accompanied by copies of audited accounts alognwith tax audit report. Considering the aforesaid submissions, Ld. Commissioner of Income Tax (A) held that the Assessing Officer was not justified in making the addition on account of excess stock as above. Hence, the addition of ₹ 10 lacs made on this account was deleted. 5. Against the above order the Revenue is in appeal before us. 6. Ld. Departmental Representative submitted that assessee has duly admitted during the survey that there is undisclosed stock of ₹ 10 lacs. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... affirm the same. 8. Apropos addition of ₹ 40,44,492/- on account of bogus sundry creditors. On this issue Assessing Officer noted that regarding sundry creditors assessee has submitted the ledger account of the suppliers/ creditors in the books of the assessee. It was further submitted that assessee had made all his best efforts to collect confirmations against the credit balance and reminders were sent and as soon as the confirmation will be received the same will be submitted. Assessing Officer did not find the contention of the assessee acceptable. He held that merely by filing the ledger account of the creditors and the books of accounts, the assessee does not prove the genuineness of the transactions, some of them with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th respect to the following five parties, their balances were having only opening balances which have been carried over to the next year and there were no transactions during this year. Hence, it was pleaded that there is no question of disallowing them in the year under consideration. i) Auto Line Engineers ii) Calex Auto iii) Sh. Ram Karan iv) Smt. Sudha Rasayan v) Pratap Industries 9.1 The next two parties, namely P.B. Enterprises and Seema Enterprises, also had only opening balances. There was no transaction for the purchase during the year. So there was no addition to the opening balances. The assessee has only made the payment to these parties during the year out of their dues of their opening ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer to obtain his remand report. It was submitted that all the transactions and the entries were duly supported by vouchers of the concerned sundry creditors. Each voucher mentioned not only the address of the sundry creditor but also the item and quantum. Further, the entire purchases and sales were accepted. The accounts were duly audited and no discrepancy in this regard was noted. The Assessing Officer has not pointed out any discrepancy in this regard. Further, out of the said creditors five parties had no transaction only the opening balance was coming from year to year. Hence, addition of creditors for preceding year cannot be justifiably made during the year under consideration. Further with regard to two parties, namely P.B. Ent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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