2013 (4) TMI 172

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....e been brought on record relating to the issue are that the assessee is a contractor filed its return of income of Rs.5,52,220. During the course of assessment proceedings u/s.143(3) the Assessing Officer obtained information u/s.131 by issuing summons to the ITO, Rayagada Ward, Rayagada to verify the genuineness of the transactions made by the assessee with M/s.Parvati Agencies, Rayagada. The ITO furnished the ledger copy of account regarding the transactions made by the assessee with M/s.Parvati Agencies, Rayagada when the Assessing Officer found that the said M/s.Parvati Agencies, Rayagada had shown Rs.1,53,551 less amount owed by the assessee than what the assessee had shown. The assessee could not explain or reconcile the difference be....

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....e of taxation in the hands of the assessee. He submitted the copies of reconciliation to that effect. He submitted that the learned CIT(A) misinterpreted the noting of the Private Limited Company when no such company existed was only a method of accounting of the said creditor of purchase and sale transactions on account of crusher were maintained separately by the creditor when the total of the debits and credits in the assessee's books of account tallied with that of consolidated ledger copies of two different parties in M/s.Parvati Agencies, Rayagada . Therefore it was not a case for taxation insofar as the loan creditor had explained the credit in their books and not that they had adjusted the same against cash. He prayed that the amoun....