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TMI Blog2020 (1) TMI 993X X X X Extracts X X X X X X X X Extracts X X X X ..... s and genuineness of its purchase is on the assessee. 3. On the facts and circumstances of the case, the Ld. CIT(A) Bhopal has erred in deleting the addition of Rs. 1,65,01,885/- on account of bogus sundry creditors without conducting an inquiry from bank w.r.t. genuineness of sundry creditors when there is absence of bank statements of creditors. 4. On the facts and circumstances of the case, the Ld. CIT(A) Bhopal has erred in accepting additional evidences under rule 46A, despite of the facts that assessee's case does not fall in any of the four circumstances mentioned in Rule 46A of the Income Tax Rules, 1962. 2. Briefly stated facts are that in this case the assessee had filed a return of income on 29.9.2012 declaring total income at Rs. 1,00,13,930/-. Subsequently, the case was selected for scrutiny assessment and the assessment u/s 143(3) of the Income Tax Act, 1961 (hereinafter called as 'the Act') was framed vide order dated 13.3.2015, thereby the A.O. made addition of Rs. 1,81,29,128/- in respect of unexplained creditors and disallowance out of diesel expenditure of Rs. 7,92,727/-, out of repair and maintenance of Rs. 5,85,165/-, out of loading and unloading expens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , no confirmation provided by assessee Jagdish Ahuja 81 1270 Reply not received, no confirmation provided by assessee Jainawin Sales 261032 Reply not received, no confirmation provided by assessee Mukesh Electric Centre 23 823 Reply not received, no confirmation provided by assessee Rajkumar Sharma 162032 Reply not received, no confirmation provided by assessee Sainath Engineering Services 90988 Reply not received, no confirmation provided by assessee S.D. Bansal Iron & Steel Pvt. Ltd. 502483 Reply not received, no confirmation provided by assessee Sherock 2893310 Reply not received, no confirmation provided by assessee S.K. Traders 802745 Reply not received, no confirmation provided by assessee S. Rajinder Singh Bhinder 48680 Reply not received, no confirmation provided by assessee S.S. Chouhan Stone Crusher 532095 Reply not received, no confirmation provided by assessee S.S. Stone Crusher 599977 Reply not received, no confirmation provided by assessee Aman Khan 22598 Reply not received, no confirmation provided by assessee Shakti Earth Movers 303737 Reply not received, no confirmation provided by assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide letters dated 09.1.2015 and 23.01.2015 along with complete detail i.e. name, TIN, PAN, address, telephone no., copy of account of all creditors. However, in the assessment order the A.O. has mentioned that no confirmation was filed by the appellant during assessment. During appeal, the appellant filed details of sundry creditors furnished before the A.O. along with copies of confirmations in respect of all 30 creditors which have been added by the A.O. Subsequently, the appellant filed confirmation from 25 creditors having received payment of outstanding balance as on 31.03.2012 by cheque and bank statement showing transaction of payment in 4 cases and requested the same to be admitted u/ R 46A of the Act. 5.9 As there was difference of factual position submitted by the A.O. and the assessment order with regard to submission of confirmation during assessment and the appellant had filed as additional evidence being confirmation from 28 creditors having receipt payment of outstanding balance as on 31.03.2012 by cheque, the matter was remanded to the A.O. 5.10 In this remand report dated 08.01.2018, the A.O. has reiterated that confirmations were not filed during assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e creditors during subsequent years. The details Of amount received along with cheques have been mentioned in the confirmations. Further, in respect of all the aforementioned creditors, the assessee has also furnished copies of his bank accounts from where payments were made to sundry creditors in subsequent year. Regarding the bank accounts of respective creditors, the assessee itself has expressed its inability to produce the same. Therefore, in view of above, decision may be taken accordingly as deemed fit. " 5.11 The remand report was forwarded to the appellant for submitting comments / rejoinder. In the rejoinder dated 26.02.2018, the appellant has again contended that all the confirmations were submitted during assessment, no details Of unserved letters were provided by A.O. to the appellant and appellant was not confronted with the unserved letters. The appellant again submitted that fresh evidences being confirmation of receipt of payment should be accepted. 5.12 1 have carefully considered the facts of the case, assessment order, remand report and the submissions of the appellant. 5.13 The fact whether the confirmations were submitted during appeal or not is dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors in respect of whom confirrnations have been filed, have confirmed that the closing credit balance as on 31.03.2012 in the books of the assessee has been received by the creditors during subsequent years. The details of amount received along with cheques have been mentioned in the confirmations. Further, in respect of au the aforementioned creditors, the assessee has also furnished copies of his bank accounts from where payments were made to sundry creditors in subsequent year. " 5.16 In view of the categorical finding of the A.O. in remand report that confirmations confirming the closing credit balance has been filed and having received outstanding amount subsequently is mentioned in the confirmations and bank account from where payments were made to sundry creditors has also been examined by the A.O., no addition can be sustained in respect of the creditors in whose case, confirmation has been filed by the appellant. The A.O. has not contended, and rightly so, in the remand report that addition can be made on the sole ground that letters issued were not served in some cases and were not replied by creditors in some other cases. These circumstances are not in control of app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the cash credit has not been discharged by the appellant. The aggregate amount of Rs. 16,27,243/- lying in these three names is found as unexplained and the addition is sustained u/ s 68 of the Act. 5.20 In view of the above discussion, out of the addition of Rs. 1,81,29,128/- made by the A.O., addition of Rs. 16,27,243/- is sustained u/ s 68 of the Act and balance amount is deleted. 4. The above finding of fact is not rebutted by the revenue. Moreover, Ld. CIT(A) has categorically observed that the confirmation was also filed with the A.O. vide letter dated 9.1.2015. It is also transpired from the records that the Ld. CIT(A) had sought remand report from the A.O. in respect of additional evidences filed by the assessee. Therefore, it cannot be concluded that the confirmations were filed first time before the Ld. CIT(A) and no opportunity was granted to the A.O. for rebutting the same. From the records, it is clear that the A.O. was given sufficient opportunity to rebut the evidences so filed. Under these facts, we see no reason to interfere with the finding of the Ld. CIT(A) and the same is hereby affirmed. The grounds raised by the revenue are dismissed. 5. In the resu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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