2012 (11) TMI 940

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r of assessment passed by the AO under section 144 of the Income Tax Act,1961(the Act) for AY 06-07. ITA No.2370/M/11 arises out of an order passed by the AO under section 154 of the Act rectifying certain defects in the order of assessment passed under section 144 of the Act for AY 06-07.   2. The grounds of appeal raised by the assessee in ITA No.2369/M/11 reads as follows:   "1. The Ld. CIT(A) erred in disposing of the appeal ex-parte.   2. The ld. CIT(A) erred in confirming the ex-parte assessment made u/s.144 of the Income Tax Act, 1961.   3. The ld. CIT(A) erred in confirming the addition in respect of sundry creditors read with the order u/s. 154 dt. 25/02/2010 at Rs. 22,73,553/-. 3.i In so doing he....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the assessee to any of the notices issued by the AO and, therefore, the assessment will have to be completed under section 144 of the Act. Despite this notice the assessee according to the AO did not produce detailed explanation, evidence etc. and therefore, the AO proceeded to frame an assessment under section 144 of Act. The AO found that in the balance sheet the creditors as on 31/3/2005 were Rs. 14,97,714/- and creditors as on 31/3/2006 was Rs. 27,71,267/-.   The AO added the difference between the opening balance and closing balance as unexplained cash credit under section 68 of the Act and made an addition of Rs.12,73,553/-. The AO also made a disallowance under section 14A of the Act and ultimately computed the total income ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ectified in the proceedings under section 154 of the Act by an order dated 25/2/2010 resulting the total income being determined at Rs.23,15,662/-. On appeal by the assessee the CIT(A) dismissed the appeal of the assessee holding that there was an apparent mistake and that the merits of the addition made under section 68 of the Act cannot be agitated in the appeal order under section 154 of the Act and that the same can be done only in an appeal against the order under section 144 of the Act. Aggrieved by this order of the CIT(A) the assessee has filed ITA No.2370/M/2011. 8. We have heard the rival submissions. As far as ITA No.2369/M/11 is concerned we find that the assessee had given the details that were called for by the AO in the no....