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TMI Blog2015 (9) TMI 1729X X X X Extracts X X X X X X X X Extracts X X X X ..... essee to produce all the 11 creditors before the AO. AO will record their statements and will also consider the explanation/evidences as may be furnished by them and thereafter readjudicate the issue in accordance with law. Addition of cash credit - Allowance/disallowance of interest would be consequential to the acceptance or otherwise of the cash credit. We, therefore, set aside the orders of the authorities below on this point also and restore the matter back to the file of the Assessing Officer to be re-adjudicated along with the issue of addition for cash credit. Addition of 20% disallowance out of telephone expenditure - HELD THAT:- Assessee is a partnership firm. The personal use of telephone by the partners cannot be ruled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld have also been decided on the basis of the Inquiry Officer s Report that goes to the root of the case, on remand of the matter by the learned Commissioner of Income-tax (Appeals). 4. We have heard both the parties and perused the material placed before us. The CIT(A) sustained the addition u/s 68 for cash credit in the account of 11 parties amounting to Rs.29,80,000/-. All the creditors are assessed to income-tax and their confirmations were produced before the lower authorities. However, the additions have been sustained mainly on the ground that the cash money was deposited in the bank account of the creditors immediately before the issue of cheque to the assessee. Such cash deposit was made by the employee of the assessee as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case and the arguments of both the sides, we agree with the contention of the learned Departmental Representative that in view of the peculiar facts of the assessee s case the decision of Hon ble Apex Court in the case of Orissa Corporation (P) Ltd (supra) may not be applicable and recording of the statement of the creditor is essential so as to ascertain whose money was actually deposited in the bank account of the creditor, whether it was unaccounted cash of the assessee or it was the cash in hand of the creditor. Therefore, we set aside the orders of the authorities below and restore the matter back to the file of the Assessing Officer. We direct the assessee to produce all the 11 creditors before the Assessing Officer. The Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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