2014 (6) TMI 74

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....ield his Return of Income [ROI] on 30.09.2008, declaring of total income of Rs. 1,46,340/-. On total sales of the year at Rs. 41,02,525/- he has disclosed gross profit of Rs. 4,09,977/- which gives gross profit rate of 9.99%, as against shown at Rs. 8.06% in earlier year on total sales of Rs. 36,75,015/- and gross profit of Rs. 3,16,268/-. The A.O. has computed total income of the assessee vide order dated 18.11.2010 at Rs. 11,70,888/- after making the following additions: (1) disallowance out of expenses claimed Rs. 1,73,464/- (2) addition u/s 68 of the Act Rs. 8,16,584/- (3) on account of house hold expenses Rs. 34,500/- 2.1 Aggrieved against the above addition, the assessee went in first appeal before the ld. CIT(A), who, in ....

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....the same but the department has not challenged this aspect before us. We have found that the creditors, in question, have admitted their respective credits and have also explained their source(s). The A.O. has not further examined them. Therefore, as per the settled position of law in this regard that unless the A.O. controverts the averments of these affidavits, the version given therein cannot be rejected. On that reasoning only the ld. CIT(A) has deleted the impugned addition. To further bolster the above, we may incorporate the evidence produced by the assessee in respect of the creditors as under:- 2.5 The above, is the pictograph of evidence produced in respect of all the creditors, including the one we are concerned with in this a....

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....ors Evidence filed No. 1. Sh. Sitaram Suthar Affidavit (Accepted by AO letter dated 18.7.2011 and WS to ITO Evidence File Rs. before the CIT (A) Copy of Affidavit 63222/- 12 Smt. Manju Devi Suthar 3 Smt Vidya Devi Saini by I.S. Shekhawat) Bank Pass Book (WS to ITO Acknowledgeme by I.S. Shekhawat) Balance Sheet (WS to ITO by IS Shekhawat) Confirmation of Accounts (WS to ITO dated 26. 7. 20 10) nt of ITR Balance Sheet Affidavit (Accepted by AO Copy of Affidavit 52250/- letter dated 18.7.2011 and WS to ITO by I.S. Shekhawat) Bank Pass Book (WS to ITO Acknowledgeme by I.S. Shekhawat) ITR Acknowledgement (WS to ITO by IS Shekhawat) nt of ITR ....