2014 (4) TMI 28

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....ances whereas on the contrary the two parties have confirmed nil balance." 2. Facts, in brief are: Assessee is owner of two proprietary firms M/s Greentex Mining Co. and Kabini Mineral Co. which are engaged in trading of iron ore from Karnataka. Besides, assessee is also a partner in firm M/s Greentex Mining & Minerals Co. from where he received remuneration during the year. For A.Y. 2008-09 the A.O. completed the assessment u/s 143(3) at an income of Rs. 76,50,310/- as against income of Rs. 18,53,039/- returned by the assessee, by disallowing liabilities claimed by the assessee on account of following sundry creditors: Mysore Mercantile Co. (MMCL) Rs. 36,69,969 Karnataka Limpo Cement Industries (KLCI) Rs. 4,71,908 Terapanth Foo....

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....lained expenditure of the assessee from undisclosed sources. The ld. DR submitted that CIT(A) without proper verification was not justified in deleting the additions by observing that no transactions took place between the assessee and these parties during A.Y. 2008-09. Further, it has been erroneously held that these credits were opening balances which have been carried forward as closing balance as on 31-3-2008. It is pleaded by the DR that in the facts and circumstances of the case the order of CIT(A) may be set aside and that of assessing officer restored. 4. Ld. Counsel for the assessee on the other hand supported the order of CIT(A). 5. We have considered rival contentions and perused the material available on record. As the fac....