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TMI Blog2016 (11) TMI 1038X X X X Extracts X X X X X X X X Extracts X X X X ..... issues raised in Grounds No. 2 & 3 relate to the additions of Rs. 4,02,008/- and Rs. 2,23,500/- made by the Assessing Officer and confirmed by the ld. CIT(Appeals) on account of disallowance of purchases and renovation expenses respectively. 4. The assessee in the present case is an individual , who is engaged in the business of dealing in Foreign Liquor. The return of income for the year under consideration was filed by him on 31.10.2004 declaring total income of Rs. 3,64,723/-. The said return was processed by the Assessing Officer under section 143(1) on 07.03.2006. Thereafter the assessee filed a revised return on 30.03.2006 showing a total income of Rs. 4,08,710/- . In order to regularize the said revised return, a notice under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he found it difficult to accept the stand of the assessee that the said expenses incurred in cash were not reflected in the original Cash Book, which was duly audited. 5. The disallowance made by the Assessing Officer on account of purchases and renovation expenses as claimed in the revised return was challenged by the assessee in the appeal filed before the ld. CIT(Appeals) and keeping in view the submissions made by the assessee in support of his case on these issues, a remand report was sought by the ld. CIT(Appeals) from the Assessing Officer on the revised accounts of the assessee. As reported by the Assessing Officer in the remand report, the fol lowing questions were asked by him to the assessee:- "(1) The assessee claimed during s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23,500/- was not accounted for in the original account due to mistake and the same was incorporated in the revised account. In this connection, the question raised how he made entry in cash book after the end of financial year when cash account is mandatory to keep on day to day basis as per principle of accountancy? 4. He claimed Rs. 17/ - more under the head travelling & conveyance in the revised account. The question rose about the reason for change and how he made entry in cash account after the end of the financial year. 5. He was asked to explain. the reason for squaring up the credit note receivable account in the revised balance sheet and where it was squared up and against what account? 6. He was asked to explain the reason f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same as bogus. 7. We have heard the arguments of both the sides and also perused the relevant material available on record. At the time of hearing before us, the ld. counsel for the assessee has not been able to of fer any satisfactory explanation as regards the failure of the assesese to substantiate the claims made on account of additional purchases and renovation expenses in the revised return/accounts during the course of remand proceedings before the Assessing Officer except stating that the case of the assessee was not properly represented before the Assessing Officer during the course of remand proceedings. It is also observed that specific and pertinent questions were raised by the Assessing Officer in respect of claims made b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l income of the assessee on substantive basis. 10. We have heard the arguments of both the sides and also perused the relevant material available on record. The limited contention raised by the ld. counsel for the assessee on this issue is that the addition of Rs. 6,69,516/- was already made by the Assessing Officer on account of sundry creditors written back on substantive basis vide his order dated 12.03.2008 passed to give effect to the order of the ld. CIT(Appeals) dated 08.02.2008 passed in the case of the assessee for A.Y. 2000-01. He has invited our attention to the copy of the said order placed at page no. 3 of his paper book and submitted that the direction given by the ld. CIT(Appeals) vide his impugned order to add the same amou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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