2017 (9) TMI 800

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....e case are that assessee is a partnership firm, engaged in the business of Textile trading, filed its return of income for relevant AY on 17.09.2011 declaring total income of Rs. 72,77,390/-. The assessment was completed on 21.03.2014 u/s 143(3) r.w.s. 145 of the Act. The Assessing Officer (AO) while passing the assessment order besides the other addition and disallowance made the addition of Rs. 86,136/- on account of nongenuine creditors, whose credit were more than three years on 31.03.2011, addition of Rs. 10,00,000/- on account of cash expenses. Addition of Rs. 2,30,85,000/- on account of cash credit u/s 68 of the Act being addition to partner's capital by way of cash and further made the addition of Rs. 2,73,48,477/- on the basis of G....

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.... sustaining the addition on account of sundry creditors and Ground No.2 relates to addition on account of cash expenses. It was argued that assessee has shown the creditors from 01.01.2000 or prior thereto. |The assessee has not shown the genuineness of creditors nor furnished the ledger account of subsequent years. With regard to the partial sustaining of addition on account of cash expenses, it was argued that the assessee was showing the huge expenses in cash. The entire salary expenditure was shown in cash, the other expenses shown to have incurred on employees who were also in cash. The assessee has not furnished cash book. The assessee furnished the CD in such a format which could not be opened for perusal. Thus, the assessee failed t....

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.... before the AO as well as before the ld. CIT(A). The ld. CIT(A) however, restricted the disallowance to Rs. 8,00,000/-. Before us, the assessee failed to substantiate his claim as to why the addition be deleted. As the assessee has neither come forward nor substantiate his claim. Thus, we do not find any illegality or infirmity in the order passed by ld. CIT(A). 6. In the result, appeal filed by assessee is dismissed. 7. Though, the Revenue in its appeal has raised as many as five grounds of appeal. However, as per our considered view, there is only three substantial ground of appeal which we summarized as under: (i) Whether ld. CIT(A) erred in accepting the additional evidence during the appellate stage without providing opp....

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....ssee furnished the details by giving the names of suppliers, invoice number, bill date, amount and number of bales. The assessee also furnished its opening stock, name of supplier, invoice number, bill date, amount and number of bales. The order of ld. CIT(A) does not reveals, if all these documents were referred to the AO for verification for seeking his comment. The ld. CIT(A) after considering the G.P. ratio for AY 2009-10 & 2010-11 declared by assessee granted full relief to the assessee by deleting the entire addition. In our considered view, the approach of ld. CIT(A) was not fair. The AO was not given an opportunity for verification of the documents. Similarly, for deleting the addition u/s 68 of the Act of Rs. 2,30,85,000/-. The ass....