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TMI Blog2020 (6) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 17,000/- being payment of late fee of service tax made by the ld. AO. 4. For that the ld. CIT(A) was not justified in confirming the disallowance of donation of Rs. 11,000/- made by ld. AO without appreciating the fact that the payment of said donation was made out of commercial expediency. 5. For that the ld. CIT(A) was not justified in passing the impugned order without issuing any valid notice to the appellant and without giving any opportunity of hearing and in gross violation of the principles of natural justice." 3. At the time of hearing, Learned Counsel informs the Bench that assessee wants to press only ground No. 2 and other grounds were not pressed, therefore, we do not adjudicate the other grounds raised by the assessee. 4. The solitary grievance of the assessee in ground No 2 is that the ld. CIT(A) has erred both in law as well as on facts in confirming the addition made by assessing officer of Rs. 60,45,315/- on account of Sundry Creditor merely for want of PAN of those sundry creditors. 5. The facts of the case which can be stated quite shortly are as follows: During the scrutiny proceedings, the assessing officer on perusal of the statement of accounts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... armendrda Sahani 8,55,590/- 05 Dipu Talukdar 8,14,070/- 06 Jayanta Saikia 8,53,580/- 07 Bikash Saharia 8,85,260/- Total 60,45,315/- Therefore, AO held that in absence of any evidence, the above transactions so reflected in the books of the assessee on account of sundry creditors, is nothing but assessee's own money which is introduced in the disguise of sundry creditors and accordingly added back the entire amount of Rs. 60,45,315/- to the total income of the assessee. 7. Aggrieved by the order of Assessing Officer, the assessee carried the matter in appeal before the Ld. CIT(A) who has not adjudicated the assessee`s appeal on merits but dismissed the appeal of the assessee on account of non-prosecution. 8. Aggrieved, the assessee is in appeal before us. 9. We have heard both the parties and perused the material available on record. Learned Counsel for the assessee submitted before us that most of the creditors are pertaining to previous year and they are coming as opening balance in the assessee`s books during the assessment year under consideration. The assessee is subject to tax audit under section 44AB of the Act therefore the auditor as well as ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .04.2016, with a request to furnish the ledger account in respect of the assessee Shri Bijan Kalita maintained in their books. We note that as regard information requisitioned under section 133(6) of the Income tax Act, 1961, the assessing officer had received all the replies form the concerned sundry creditors to whom requisition was made under the above section. However, while scrutinizing the confirmations received from various individuals who stated to be sundry creditors in the books of the assessee, it was noticed by the assessing officer that in respect of 25 (twenty five) numbers of such individuals either they do not possess PAN or have PAN but not furnish their returns of income. As per assessing officer, the following were the individuals whose confirmation of accounts had been furnished before him (assessing officer) but these individuals had not filed their returns of income. SL No. Name of the individuals/sundry creditors Amount outstanding in the books of the assessee as at 31.03.2014 01 Shafiqul Islam 7,69,006/- 02 Basanti Devi 9,41,775/- 03 Mithu Sharma 8,34,850/- 04 Mantia Das 9,52,550/- 05 Rantu Sharma 8,18,800/- 06 Kanak Baishya 8,85,210/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. In addition to this, all creditors filed the confirmations and required documents in response to notice under section 133(6) of the Act therefore the genuineness of the balance creditors should not be doubted. 13. We note that during the assessment proceedings, the assessing officer has recorded the statement of three creditors u/s 131 of the Act, however, he failed to bring any cogent evidence on record to demonstrate that assessee`s creditors are bogus. We note that statement is a good evidence provided it is supported by any tangible material or corroborate evidence. For that, we rely on the order of the Coordinate Bench in the case of Tum Nath Shaw vs ACIT 175 ITD 45 wherein it was held as follows: "22. We have heard both the parties and perused the material available on record, we note that the addition made by the Assessing Officer is purely on conjectures and surmises. The assessee has disclosed income Rs. 1.8 per tin whereas the Assessing Officer made an addition on account of differential amount without any base and without any evidence on record. The ld AO made this addition solely based on the statement of the assessee. We note that statement is a good evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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