9911796707
TMI Blog2016 (12) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... artner in firms M/s. Agrawal Brothers, Chalisgaon, G.M. Oil Mill, Chalisgaon and Agrawal Industrial Complex, Chalisgaon. A search and seizure action u/s. 132 (1) of the Act was carried out in the case of Agrawal Group on 03-11-2004. In response to notice issued u/s. 153A of the Act, the assessee declared income of Rs. 3,07,896/- and agricultural income of Rs. 32,618/-. During the course of assessment proceedings the Assessing Officer made addition on account of low house hold expenses Rs. 1,31,071/-, unexplained investment in land Rs. 1,50,000/-, unexplained cash credit Rs. 2,12,000/-. The assessee filed appeal against the assessment order. In first appeal, the Commissioner of Income Tax (Appeals) deleted the entire addition in respect of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aper book. The authorities below have erred in disbelieving the affidavits as the assessee could not produce the persons before the Assessing Officer. The assessee had furnished ledger extracts of the creditors and affidavits of all the creditors before the Commissioner of Income Tax (Appeals). The ld. AR contended that the assessee has discharged its onus to prove the genuineness of creditors. So far as the creditworthiness of the creditors is concerned, the loan amounts are small for which creditworthiness need not be proved. The ld. AR contended that in the balance sheet of the Mayur Metals proprietary concern of the assessee there were total loans of Rs. 4.66 lakhs. The assessee furnished confirmations in respect of loans to the tune of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ively numbered. This itself shows that the affidavits were fabricated and no sanctity can be attached to the same. The assessee has not been able to produce even single creditor either before the Assessing Officer or the Commissioner of Income Tax (Appeals). The ld. DR prayed for dismissing the appeal of the assessee and confirming the order of Commissioner of Income Tax (Appeals). 5. We have heard the submissions made by the representatives of rival sides and have perused the orders of the authorities below. The assessee is in appeal against the confirmation of penalty levied u/s. 271(1)(c) of the Act in respect of additions of Rs. 2,12,000/- made u/s. 68 of the Act. The penalty of Rs. 69,960/- has been levied on account of unexplained ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors before the AO either during the course of assessment proceedings or the appellate proceedings. The affidavits filed by the appellant during the appellate proceedings were nothing but self serving documents which were not backed by any other documentary evidences. The appellant has failed to discharge his onus in regard to genuineness of the above cash creditors. Moreover, all these facts came to notice of the department during search/post search enquiries. The appellant has introduced bogus cash credits in his books of account. The very fact that the appellant could' not produce any cash creditor also establishes that the cash credits amounting to Rs. 2,12,000/- were not genuine. The appellant with a malafide intention to evade tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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