9911796707
TMI Blog2017 (7) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... tiate her case and produce Shri Prakash Basrani before the Assessing Officer for his examination. The Assessing Officer shall decide the issue as per law and fact after giving due opportunity of being heard to the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... been received. In response to the same, the assessee furnished ledger extract appearing in the books of the assessee of the said party. On an analysis of this ledger account, the Assessing Officer noted that there is credits to the extent of ₹ 37,00,000/- on two different dates i.e. 19.07.2004 and 22.07.2004. In absence of any details filed by the assessee regarding creditworthiness of the said creditor and non-production of the said creditor for his examination, the Assessing Officer invoking the provision of section 68 made addition of ₹ 35,00,000/- being the amount shown as credit in the name of Shri Prakash Basrani in the books of the assessee. 9. Before the CIT(A), it was submitted that Shri Prakash Basrani is proprietor of M/s Raj Metals, having Head Office at D-34, Near Bus Stand, Kolhapur and branch office at Opp.Hotel, Ambar, Near Post Office, Jalna. The creditor has effected sale and purchase transactions of scrap and MS Bars with the assessee. The amount paid to and received from Shri Prakash Basrani are advances for purchases and advances received for sale. The assessee filed the Xerox copy of the PAN Card and statement of account which was filed during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the A.O. for verification ii) Shri Prakash Basrani has not reflected the amounts receivable from the appellant in the returns of income filed. Even the transactions/business of trading scrap/CTD bars under the name of style of M/s.Raj Metals and M/s.Hari Om Steels were not show in the returns of income filed. iii) The Sales Tax Registration Numbers appearing in the bills of M/s.Raj Metals is found to be non-genuine and the same belonged to Shri Sunil Arjundas Basrani, Prop. of M/s.Raviraj Marketing & Sales, Kolhapur. The Sales Tax Officer communicated that M/s.Raj Metals and M/s.Hari Om Steels are not registered under Sales-tax and M.V.A.T. upto the date. iv) Shri Prakash Basrani is an employee of the appellant and his financial position is not sound to permit him to carry on business of steel/scrap trading. v) The appellant has not rebutted the various facts pointed-out and the contentions raised by the A.O. in the remand report in her counter comments on the remand report. The appellant was specifically asked to file reply in respect of following issues vide this Office letter dated 20/09/2010 on or before 07/10/2010: i) To prove the credit balance as on 31/03/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he file of the Assessing Officer with a direction to give an opportunity to the assessee to produce Shri Prakash Basrani before the Assessing Officer. 13. Ld. DR, on the other hand, while supporting the order of CIT(A) submitted that he has no objection if the matter is set-aside to the file of the Assessing Officer with a direction to the assessee to produce Shri Prakash Basrani for examination by the Assessing Officer. 14. We have considered the rival arguments made by both the sides, perused the orders of the Assessing Officer and the CIT(A) and the Paper Book filed on behalf of the assessee. We find the Assessing Officer made addition of ₹ 35,00,000/- u/s.68 of the I.T. Act, 1961 being the amount received by the assessee from Shri Prakash A. Basrani on the ground that the assessee was unable to prove the identity and capacity of the said person to give such huge amount and the genuineness of the transaction. We find the CIT(A) upheld an addition of ₹ 23,00,000/- on the ground that the assessee has not complied with the direction given by him to prove the net credit balance as on 31st March, 2005 of ₹ 23,00,000/- appearing in the balance sheet of Shri Prakash ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
