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TMI Blog2021 (10) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... ails - A.R. has submitted that the sundry creditors balance represents trade creditors and all the creditors have running account - HELD THAT:- The fact remains that the assessing officer has made the impugned addition only for the reason that the assessee has not furnished relevant details called for by him - in the interest of natural justice, we are of the view that the assessee should be provided with one more opportunity to furnish explanations and details on this issue. Accordingly, we set the order passed by Ld. CIT(A) on this issue in all the three years and under consideration and restore the same to the file of AO for examining the same afresh. After providing adequate opportunity of being heard, the AO may take appropriate decision in accordance with law. Disallowance of prior period expenses - AO made this disallowance for want of details and also for the reason that this expense did not relate to AY 2010-11 - CIT(A) confirmed the same on identical reasoning - HELD THAT:- Before us also, no detail was furnished. Accordingly, we confirm the order passed by Ld. CIT(A) on this issue. - ITA Nos. 1071 to 1073 and 814 to 816/Bang/2019 - - - Dated:- 28-9-2021 - N.V. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010-11 26,07,65,920 2,60,76,592 2011-12 41,90,39,290 4,19,03,929 2015-16 36,80,82,430 3,68,08,243 6. During the course of assessment proceedings, the A.O. asked the assessee to furnish the details of sundry creditors and also confirmations from them. Since the assessee did not furnish the details, the A.O. added the balance of sundry creditors to the total income of the assessee as detailed below: Assessment year Sundry creditors Amount 2010-11 2,05,12,678 2011-12 3,62,602 2015-16 43,01,897 7. The A.O. also noticed that the assessee has debited a sum of ₹ 5 lakhs and ₹ 5,50,000/- respectively in the years relevant to the assessment years 2010-11 2015-16 as prior period expenses . Since the assessee did not furnish the details there of, the A.O. held that the prior period expenditure is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revailing in their group, including that of the assessee company. Further, the statement so given has not been retracted by the assessee till date. He submitted that as per the provisions of sec. 132(4) of the Act, the statement taken u/s. 132(4) may be used in evidence in any proceeding under the Act. Accordingly, the Ld. D.R. submitted that the statement so given by Shri Alok Gupta is a valid material and forms the basis of reopening of assessment of the two years under consideration. Accordingly he contended that the Ld. CIT(A) was justified in confirming the validity of reopening of assessment. 12. We heard the parties and perused the record. We find merit in the contentions made by Ld. D.R. As rightly pointed by Ld. D.R., Shri Alok Gupta has not expressed his ignorance about the affairs of the assessee company prior to the period of acquisition, meaning thereby, it can be safely presumed that he was aware of the transactions of the assessee company prior to its acquisition by OPG Group. Further, the statement so given u/s. 132(4) has not been retracted till date. Under the provision of sec. 132(4), the statement so given may be used in evidence in any proceeding under the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely ₹ 250 crores of unaccounted sales per annum must have been around ₹ 75 crores of accounted sales. Please state the application of the revenue realized from unaccounted sale. Ans: Sir, similar to the unaccounted sale due to business exigencies we are also indulged in unaccounted expenditure like unaccounted purchase of raw materials. Major part of revenue realized though unaccounted sale is used for unaccounted cash purchase. I request you a weeks time for me quantify the unaccounted income earned by way of unaccounted sales. Sir, I also submit that in M/s. APS Steels Ltd. due the burst of the transformer the business was shut down for the past six months. The net actual incomes received by me out of the normal books of Accounts are being used by me for personal expenses of the family . A perusal of answer given to question No. 25 would show that the assessee has admitted that there is suppression of expenditure due to business exigencies, which included unaccounted purchase of raw materials. Hence there is suppression of both purchases and sales. Accordingly, the Ld. CIT(A) has taken the view that, in the facts and circumstances of the case, the gross profi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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