TaxTMI 
TaxTMI 
2012 (9) TMI 182
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.... involved are similar and therefore, he is making common submissions in respect of both these appeals. 3. Since both these appeals were argued together, they are being disposed of by a common order for the sake of convenience. 4. The first common ground of appeal taken in both the appeals is that the CIT(A) is not justified in upholding the addition of Rs. 16,49,728/- in the case of Shri R.Thangamani and Rs. 22,99,052/- in the case of Shri A.Rajendran, made by the Assessing Officer as unexplained creditors. 5. The brief facts of the case are that in the case of Shri R.Thangamani, the Assessing Officer, while completing the assessment, made addition of the following creditors for non-filing of confirmations by the assessee: i) ....
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....with the creditor there exists scope of addition of credits in the hands of the assessee on account of remission of liability. " 8. The A.R of the assessee submitted that in the case of Shri R.Thangamani, the addition of Rs. 10,23,865/- represents opening balance as on 1.4.2006. The entire addition does not pertain to the year under appeal and hence, the same should be deleted. As regards M/s Asian Needle Agency, the A.R submitted that total purchases made during the year were Rs. 4,45,460/- and payments made during the year was Rs. 2,30,000/- leaving a closing balance as on 31.3.2007 of Rs. 2,15,460/-. This balance amount was paid in the subsequent years ending 31.3.2008 and 31.3.2009, account copies of which are placed in the paper boo....
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....f ITO vs Mayura Agarwal, [2011]128 ITD 55(Agra) (TM) and submitted that the Third Member, in that case, has held that where the assessee has given complete addresses of creditors and when the summons were duly served on the parties the identities of the parties were duly proved. He submitted that in both the cases, in respect of M/s Century Corporation and M/s J.M.Traders, letters sent by the Department were served on them but no reply was received from them. Therefore, it was his submission that his case was supported by the said decision. He also relied on the decision of Visakhapatnam Bench of the Tribunal in the case of Priyadarshini Education Academy vs ACIT,[2010] 125 ITD 141 (Visakhapatnam), and submitted that it was held in that cas....
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....gamani, could not file confirmations of the following three sundry creditors: i) M/s Century Corporation Rs. 10,23,865/- ii) M/s Asian Needle Agency Rs. 2,15,450/- iii) M/s J.M. Traders Rs. 4,10,413/- Rs. 16,49,728/- 13. He also observed that the assessee, Shri A.Rajendran, could not file confirmations of the following three sundry creditors: i) M/s Century Corporation Rs. 18,49,137/- ii) M/s Asian Needle Agency Rs. 2,61,570/- iii) M/s J.M. Traders Rs. 1,88,345/- Rs. 22,99,052/- 14. For want of confirmations from the sundry creditors, the Assessing Officer added Rs. 16,49,728/- in the case of Shri R.Thangamani and Rs. 22,99,052/- in the....
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....on of Rs. 10,23,865/- in the case of the assessee, Shri R.Thangamani and Rs. 18,49,137/- in the case of the assessee, Shri A.Rajendran was without any authority of law and unsustainable. 17. In respect of M/s Asian Needle Agency, we find that the copy of the ledger account as appearing in the books of the assessees for the assessment year under consideration in the case of the Shri A.Rajendran is placed at page 4 of the paper book and in the case of the assessee, Shri A.Rajendran is also placed at page 4 of the paper book and for the assessment year 2008-09 is placed at page 5 of the paper book in the case of the assessee, Shri R.Thangamani and is also placed at page 5 of the paper book in the case of the assessee Shri A.Rajendran. A per....
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....ny amount more than Rs. 2,30,000/- and the assessee Shri A.Rajendran paid more than Rs. 2,00,000/- in the assessment year under consideration to the said party. In the above circumstances, in our considered opinion, addition made for want of confirmation was not warranted when the purchases were duly supported by bills and substantial subsequent payment was made through banking channel. 18. In respect of the third party, M/s J.M.Traders, the copy of the ledger account in the case of the assessee, Shri R.Thangamani is placed at page 6 of the paper book and in the case of the assessee, Shri A.Rajendran is also placed at page 6 of the paper book filed by the assessee for the year under consideration and for the assessment year 2008-09 in th....