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TMI Blog2022 (5) TMI 1129X X X X Extracts X X X X X X X X Extracts X X X X ..... for fresh adjudication. Accordingly, this issue of assessee s appeal is allowed for statistical purposes Addition by invoking the provisions of section 41(1) as against addition made u/s 68 by AO on sundry creditors - HELD THAT:- As assessee requested that the matter can go back to the file of the AO to decide the issue whether the additions are to be made u/s.68 or u/s.41(1) after considering the facts of the case, whether the sundry creditors are arising out of sales or not - we are of the view that in the above given facts and arguments, let the matter go back to the file of the AO for fresh adjudication as argued by both the sides. Hence, we set aside this issue in both the appeals i.e., Revenue as well as assessee, to the file of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeswaran Rs.5,00,000 (iii) C.K. Shanmugavelyatham Rs.5,00,000 (iv) M.T. Ramesh Kumar Rs.5,00,000 (v) P. Subbathal Rs.5,00,000 (vi) D. Rajiv Mohan Rs.2,40,594 Total Rs.27,40,594 According to AO, the assessee has filed stereotyped letters but no PAN number or other details including identity, date of advancing the said amount, mode of payment, source of share application money, etc., were not filed and hence, genuineness of claim could not be verifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proof, hence in the absence of any proof the CIT(A) confirmed the action of AO vide para 5.1 as under:- 5.1 In the course of appellate proceedings, the appellant produced some confirmation letters from some parties. On a scrutiny of the same, it can be seen in these letters that there is no mention of PAN, nature of payment and source from which it is paid. Hence, the appellant has not discharged the onus of proving the credit by establishing the genuineness of the transaction nor the credit worthiness of the creditor. Hence, I find that the order of the Assessing Officer was correct and there is no reason why his conclusion needs to be disturbed. Therefore, the addition of Rs.69,81,191/- made u/s 68 of the Act which are credit of unprov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the evidences that the assessee has filed complete ledger copies of share applicants and also filed other details including confirmations. According to us, these additional evidences filed by assessee will go to the root of the matter and it will help in adjudicating the issue and hence, keeping in mind the principles of natural justice, we admit these evidences and remand the matter back to the file of the AO for fresh adjudication. Accordingly, this issue of assessee s appeal is allowed for statistical purposes. 8. The next common issue in both the appeals of Revenue and assessee is as regards to the order of CIT(A) restricting or upholding the addition of Rs.2,58,80,414/- by invoking the provisions of section 41(1) of the Act, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have not happened. Hence, I hold that the assessment made by the AO u/s 68 of the Act was wrong. The CIT(A) after considering additional evidences and even remand report from the AO restricted the addition at Rs.2,58,80,414/- to be assessed u/s.41(1) of the Act as against addition made by AO of Rs.10,67,68,912/- assessed u/s.68 of the Act as cash creditors. The CIT(A) recorded his finding in para 6.4 6.5 as under:- 6.4 A detailed analysis was done on the ledger accounts furnished by the appellant during the appellate proceedings. Considering the argument that the subsequent payments are an indication of the life of the accounts, these accounts which remain dormant were separated and tabulated as Annexure-I. There is another set of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not respond or confirmed the balance liability to pay has ceased to exist. The ld.AR now before us stated that based on ledger accounts filed by the assessee that subsequent payments are an indication of the life of the accounts, the CIT(A) confirmed the following additions u/s.41(1) of the Act:- (i) Accounts which remain dormant - Rs. 1,71,12,670 (As per Annexure I to CIT(A) order) (ii) Transactions squared up by making a journal Entry Advance to Supplier - Rs. 87,67,735 (As per An ..... X X X X Extracts X X X X X X X X Extracts X X X X
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