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TMI Blog2003 (9) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... 105 parties. The assessee was able to secure confirmations from 103 creditors. But the assessee could not procure the confirmations from the remaining two parties for the reason that these parties were out of town. The learned counsel for the assessee argued that the credits were genuine and the amount of loan was received per account payee cheque and were paid per account payee cheque only. The assessee had in its letter dt. 14th Dec., 1993 to the AO has explained that the assessee is trying to get the confirmation from two creditors, namely, Shri S.L. Sawant and Shri Krishna Shah. The learned counsel for the assessee argued that before the CIT(A), the assessee produced the confirmation from Shri S.L. Sawant regarding his credit entry of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee by the AO to produce confirmations from these two parties. On a careful consideration of the entire controversy on this issue, we find that it is the overall conduct of the assessee which is to be considered before deciding the admissibility of the additional evidence in the case. Out of 105 creditors, the assessee was able to secure and file the confirmations from 103 parties. The confirmation of Shri S.L. Sawant was sought to be filed before the CIT(A) by the assessee. The assessee has tried to explain before the AO that the confirmations from the two creditors could not be produced since these two creditors were out of town. Considering all the facts and circumstances of the case we hold that in the interest of justice th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the assessee has received all amounts from its sister concern M/s Raj Oil Mills per account payee cheques only. He argued that the actual amount received from M/s Raj Oil Mill per account payee cheque is more than the expected receipts in the notings on the loose paper found by the Department. He relied on the decision of the Hon'ble Bombay High Court in CIT vs. C.J. Shah Co. (2000) 246 ITR 671 (Bom), of the Tribunal in the case of S.P. Goel vs. Dy. CIT (2002) 77 TTJ (Mumbai)(TM) 1 : (2002) 82 ITD 85 (Mumbai)(TM) and in the case of S.K. Gupta vs. Dy. CIT (1999) 63 TTJ (Del) 532. 5. The learned Departmental Representative has opposed the arguments of the learned counsel for the assessee. The learned Departmental Representative argued t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplete chart of these payments vis-a-vis expected receipts from the various parties along with cheque numbers are given on p. 2 of the written submissions filed by the assessee before the CIT(A). We find that the actual receipts of amount being more than the expected amount, no case for addition is made out by the Revenue. We find that the AO while making the addition in the hands of the assessee on the basis of the loose paper seized in search operations on the sister concern, has observed, "Thus, it is quite possible that entries which are claimed to be the expected recoveries were also the actual recoveries which the assessee has not recorded in the books of accounts." This observation of the AO while making the addition in the hands of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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