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TMI Blog2016 (5) TMI 1101X X X X Extracts X X X X X X X X Extracts X X X X ..... inciple of law. The taxing authority can act only if there is power under the statute to do so”. Further, the addition was made by invoking the provisions of the section 68 of the Act. If the liabilities are old, no credit has been made in so far those credits in the books of accounts in the assessment year under consideration, Sec.68 cannot be applied. This view of ours is supported by the judgement of Delhi High Court in the case of Usha Stud Agricultural Farms Ltd.,[2008 (3) TMI 91 - DELHI HIGH COURT] wherein held that credit balance in the account of the assessee did not pertain to the year under consideration, the AO was not justified in making the addition u/s.68 of the Act. Hence, in our opinion, the liabilities which were not credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A). 3. The facts of the case are that the assessee is a firm and is engaged in the processing and whole sale trading of Raw and Wet blue Leathers. The assessee filed its return of income admitting an income of ₹ 340,080/- on 30/09/09. Subsequently a revised return was filed on 04/12/09 admitting an income of ₹ 3,77,880/-. The return of income was processed u/s 143(1) and the case was selected for scrutiny by issue of notice dated 18/08/10 u/s 143(2) of the Act. The assessee s authorized representative appeared from time to time and gave the information and explanations that were sought for by the Assessing officer. The Assessing officer sought confirmation of the balance of sundry creditors lying in the books of account amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reditors as follows:- 1. Credits unconfirmed/partially confirmed Name Balance as on 31.03.2009 Amount unconfirmed Addition upheld Remarks J J Traders 603679 475000 475000 Transactions have continued in 2009-10 and later years Rajesh Corporation 283883 12555 12555 Transactions have continued in 2009-10 and later years Standard Chemicals 182000 182000 182000 Balance continues till 31.3.11 and it is Nil in 31.3.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 610470 610470 610470 Inv copies with check post markings available Indian Hide Co., 458035 458035 458035 Inv copies with check post markings available Reliance Traders 321200 321200 321200 Inv copies with check post markings available Total 1389705 1389705 1389705 4. No compliance Name Balance as on 31.03.2009 Amount unconfirmed Addition upheld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounting to ₹ 1,38,31,660/-, an amount of ₹ 66,98,357/-, which cannot be proved as genuine to be sustained. Against this admission made by the assessee, the assessee cannot file the appeal before this Tribunal. Further, he submitted that opening credit cannot go out of purview of Sec.68 of the Act in view of language of Sec.68 of the Act, as the same is found credited in the books of accounts of the assessee, maintained for in that previous year . When the assessee is not able to offer proper explanation, the same may be considered as income of assessee in the previous year relevant to the assessment year under consideration. Thus, he submitted that, the word in previous year found in the section 68, is having very significa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot give jurisdiction and a right to the assessing authority to make an addition, is an essential principle of law. The taxing authority can act only if there is power under the statute to do so . Further, the addition was made by invoking the provisions of the section 68 of the Act. If the liabilities are old, no credit has been made in so far those credits in the books of accounts in the assessment year under consideration, Sec.68 cannot be applied. This view of ours is supported by the judgement of Delhi High Court in the case of Usha Stud Agricultural Farms Ltd., cited supra wherein held that credit balance in the account of the assessee did not pertain to the year under consideration, the AO was not justified in making the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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