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TMI Blog2022 (11) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... delete the addition. Addition on account of closing balances as made by the AO in respect of sundry creditors - HELD THAT:- AO during the course of assessment proceedings issued notice u/s 133(6) of the Act to various sundry creditors and on perusal of the ledger copies received from Mousum Hardware and Paras Aluminium, the AO noted that closing balances as on 31.03.2014 stood at Rs. 150,709/- and 5,44,000/- respectively whereas as per the books of account of the assessee the outstanding balances were Rs. 360,457/- and Rs. 734/- respectively as on that date resulting into difference of Rs. 7,53,014/- which was informed to the assessee vide letter dated 02.12.2016 but assessee did not reply the same and finally it was added to the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscrepancy - Undisputedly all these documents as placed before us were also available before the lower authorities but somehow overlooked. Considering these facts and circumstances of the case, we are inclined to set aside the order of Ld. CIT(A) on this issue and direct the AO to delete the addition - The ground is allowed. - I.T.A. No. 57/Kol/2022 - - - Dated:- 19-10-2022 - Shri Rajesh Kumar, Accountant Member And Shri Sonjoy Sarma, Judicial Member For the Appellant: Shri Soumitra Chowdhury, Advocate And Shri Jaydeep Chakraborty, Advocate For the Respondent: Shri Partha Pratim Barman, Addl. CIT ORDER Per Shri Rajesh Kumar, AM: This is the appeal preferred by the assessee against the order of the Ld. Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee on this issue. 6. The Ld. A.R vehemently submitted before the Bench that both the authorities below have failed to take due cognizance of the evidences adduced before them as regards the breakup/details of payments made to various parties in cash. The Ld. A.R. filed breakup of all the amounts before the Bench and also pointed out from the Paper Book that all the details were also available before the authorities below but they have simply overlooked the facts on records. The Ld. A.R took us through the each and every item of expenditure qua labour charges/road purchases, general expenses and proved that all these payments were below Rs. 20,000/-. The Ld. A.R. also took us through the details of said expenditure and vouchers which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments and therefore the order of Ld. CIT(A) is wrong and cannot be sustained. We also note that all the evidences were furnished and placed before the authorities below and somehow escaped their attention. In view of these facts, we are inclined to set aside the order of Ld. CIT(A) on this issue and direct the AO to delete the addition of Rs. 23,17,568/-. 10. The issue raised in ground no. 4,5 6 relates to the confirmation of addition on account of closing balances by the Ld. CIT(A) as made by the AO in respect of sundry creditors. 11. In ground no. 4, the assessee has challenged the addition of Rs. 7,53,014/- by the Ld. CIT(A) as made by the AO on account of closing balance differences two sundry creditors as on 31.03.2014. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties and perusing the material on record and after examining the copies of account furnished by the assessee in respect of Paras Aluminium, Mousam Hardware and Sanitary and Mondal Enterprise, we note that the assessee has made various payments through cheques which were duly presented for payment in the State Bank of India. As is apparent from the copy account of Paras Aluminium , the assessee has fully discharged its liability and there was closing balance of Rs. 753,014/-.Therefore there is no room for any doubt that there is any discrepancy in the books of accounts as each and every bill was paid through cheque and was duly presented for payment in the bank account of the assessee. Similarly in the case of Mondal enterprises copy of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of Ld. CIT(A) and direct the AO to delete the addition of Rs. 7,53,014 , Rs 2,53,314/- and 10,06,328/- . Accordingly ground no. 4 ,5, and 6 are allowed. 17. The issue raised in ground no. 7 is against the confirmation of addition of Rs. 35,000/- by Ld. CIT(A) as made by the AO on account of difference of rental expenses. 18. During the course of assessment proceedings, the AO observed that the assessee claimed expenses on account of rent amounting to Rs. 3,89,273/- however on verification of records ,the AO noted that the actual expenses were Rs. 3,54,273/- only and hence added the difference of Rs. 35000/- to the income after giving the show cause notice to the assessee which was not complied with by the assessee. 19. The Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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