TaxTMI 
TaxTMI 
2017 (6) TMI 239
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....sting & accepted sundry debtors as on 31.03.2005. 3. The grounds raised in the appeal of the Revenue in ITA No. 2289/Del/2012 are reproduced as under: "1. On the facts and on the circumstances of the case the learned Commissioner of Income Tax (Appeals) has erred in deleting the addition of Rs. 50,00,000/- and opined that this amount after ascertaining its taxability may be added in the income of Mrs. Janak Gupta. The appellant craves leave to ad, alter or amend any of the grounds of appeal before or during the course of hearing of the appeal." 4. The facts in brief of the case are that the assessee, a partnership firm, was having two partners, namely, Mrs. Janak Gupta and Mr. Ashwini Gupta. The assessee firm did not file its return of income for the year under consideration either within the period prescribed under section 139(1) of the Income-tax Act,1961 (in short 'the Act') or before the end of the assessment year. In view of non-filing of the return of income, the Assessing Officer issued notice under section 142(1) of the Act asking assessee to file the return of income. In response, the assessee firm filed return of income on 28/11/2008, declaring a l....
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....A.G. Impex 756200 756200 Cash NIL Ashu Plastic 428900 4289C0 Cash NIL Bombay Plastics Corpn. 232400 232400 Cash NIL Chopra Sales 287690 287690 Cash NIL Chopra Traders 256400 256400 Cash NIL Goel Plastic Sales 341,810 341810 Cash NIL Hanuman Plastic Bhandar 114500 114500 Cash NIL Hari Plastic Mart 620871 620871 Cash NIL. Hindustan Sales 399200 399200 Cash NIL Indochem & Polymers 305326 305326 Cash NIL Jaikishan Enterprises 874600 874600 Cash NIL Mohatta Commercial Enterprises 5221000 1000000 Cash 4221000 R.D. Sales 896700 896700 Cash NIL Shiv Plastic Bhandar 177400 177400 Cash NIL Shiv Plastic Traders 106020 106020 Cash NIL Shree Krishna Supply Agency 6335750 1335750 500000.1 Cash Cheque NIL Super Sales 297700 297700 Cash NIL Tara Enterprises 1146900 1146900 Cash NIL 9. In the books of accounts, the cash shown to have been received from the debtors was in amounts of less than Rs. 20,000/- on various dates....
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....g in cash in its books of accounts. During the year under consideration, the appellant did not carry out any business activity. It was running an over-draft bank account and was paying substantial interest on it. The appellant's opening balance for debtors was Rs. 1,84,94,041/- and the closing balance was Rs. 42,21,000/-. The appellant had introduced cash amounts of less than Rs. 20,000/- on various dates. The A.O. tried to verify the said payments from the debtors. The appellant was given opportunity to produce the debtors which it failed to avail. The A.O. then deputed his Inspector for making on the spot enquiry and to serve summons u/s 131 to these debtors. The Inspector reported that the names and addresses of debtors provided by the assessee are fake or incomplete or incorrect and that not even a single debtor was traceable. The reports of the Inspector were annexed to the assessment order. Thus, the debtors remained untraceable despite-opportunity of production given to the appellant and field enquiries made by the Inspector. The appellant has not been able to rebut the findings of the A.O. regarding untraceability of debtors either during the assessment or during the ap....
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....sole ground of the appeal of the Revenue, the addition of Rs. 50,00,000/- deleted by the Ld. CIT-(A), has been challenged. 17. Before us, the Ld. Senior DR, relying on the order of the Assessing Officer submitted that in books of accounts credit of Rs. 50,00,000/- was shown to have received from Shree Krishna Supply Agency, a sundry debtor, however, on verification of bank statement, it was found that said credit of Rs. 50,00,000/- was received from the saving account of Mrs. Janak Gupta, partner of the assessee firm. According to ld. Senior DR, the assessee failed to explain the credit in terms of section 68 of the Act and, therefore, the action of the Ld. CIT-(A), in allowing relief to the assessee was not justified. 18. On the contrary, the learned counsel of the assessee relied on the finding of the Ld. CIT-(A). 19. We have heard the rival submission and perused the relevant material on record. The facts in respect of issue in dispute are that on examination of books of accounts, the Assessing Officer found a sum of Rs. 50,00,000/- credited in the bank account on 05/12/2005 and shown as received from Shree Krishna Supply Agency, a sundry debtor of the assessee. The assess....