2008 (11) TMI 335

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....) on October 18, 1995. A notice was issued to him under section 158BC of the Income-tax Act, 1961, requiring the assessee to file his return of disclosed and undisclosed income. In the present case, we are concerned with the amount pertaining to the sundry creditors. As per the original books of account of the assessee as on October 18, 1995, the amount due to the sundry creditors has been shown at Rs. 13,70,724.76. However, as per the declared undisclosed income as on October 18, 1995, the amount due to the sundry creditors is shown at Rs. 27,56,441.17. Sundry creditors included M/s. Mohan Fireworks to the tune of Rs. 9,52,020 and M/s. Santosh Sharma to the tune of Rs. 4,70,891.16. During the course of hearing, the assessee was asked to su....

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....e Works Rs. 7.52 lakhs 2. Shantosh Sharma Rs. 4.71 lakhs The authorised representative of the assessee pleaded that the parties mentioned above were not co-operating with the assessee. Reference is made to the decision of the Andhra Pradesh High Court reported in Indwell Constructions v. CIT [1998] 232 ITR 776 that when the books of account have been rejected such additions should not be made. Even though the facts of the assessee's case are different from the facts before the Andhra Pradesh High Court (supra), it can be said taking the entire facts of the assessee's case into consideration that it was not necessary to make a further addition on account of the two parties mentioned above. Therefore, the addition is deleted." 4. The....