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TMI Blog2010 (2) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... e is a dealer in silk sarees. It has filed its return of income for the impugned assessment year 2001-02 declaring total income of ₹ 24,02,600/-. Assessment was completed u/s.143(3). Assessing Officer determined the taxable income at ₹ 52,88,494/-. 3. In the course of assessment proceedings, it was noticed by the Assessing Officer that an aggregate sum of ₹ 24,29,115/- was payable by the assessee to five weavers at Bangalore and Doddaballapur. The assessee has shown these accounts payable in the name of those creditors as part of running accounts. The assessing authority issued letters to those creditors seeking clarifications on those outstanding amounts. The letters were returned by postal authorities for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s against the addition of ₹ 3,67,100/- made by the assessing authority. 5. The Commissioner of Income-tax(A) has deleted disallowance of ₹ 39,680/- made by the assessing authority u/s.40A(3). He has also deleted the disallowance of ₹ 50,000/- related to traveling expenses. 6. The assessee is highly aggrieved by the additions sustained by the Commissioner of Income-tax(A), in fact enhanced, in respect of unproved credit balances reflected in the accounts. 7. We heard Shri. V. Srinivasan, the learned Chartered Accountant, appearing for the assessee and Smt. V. S. Sreelekha, the learned Additional Commissioner of Income-tax, appearing for the Revenue. We have gone through the material facts relating to the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sked for, every credit has to be reasonably explained. 8. In the present case, in spite of a lot of argumentative materials placed by the learned representative before us, we are of the considered view that the credit balances objected to by the Assessing Officer still stand unproved. Therefore, in the facts and circumstances of the case, we do not have any option, but to confirm the order of the Commissioner of Income-tax(A) on this point. 9. Now regarding the question of enhancement of the addition made by the Commissioner of Income-tax(A), we find that the assessee deserves leniency. The remand report came long after the closure of the concerned previous year and the indiction made by the assessing authority in his remand rep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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