2018 (3) TMI 1305

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.....2012 admitting a total income of Rs. 5,61,300/-. The case was selected for scrutiny and the Assessing Officer called for the various details by issuing notices u/s 143(2) and 142(1) of the Act. Since there is no response from the assessee, the A.O. verified the financial statements and found from the balance sheet that assessee had outstanding sundry creditors of Rs. 3,27,40,100/- at the end of the year. The A.O. also verified the outstanding balance of sundry creditors in the immediately preceding year, and found at Rs. 32,56,209/-. The difference amount of Rs. 2,94,83,890/- (Rs. 3,27,40,100 - Rs. 32,56,209) was brought to tax as unproved creditors., since assessee failed to furnish any details. The income was assessed at Rs. 3,00,45,190/....

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....his comments, but the assesse failed to respond to the Ld.CIT(A). The ld.CIT(A) considered the submissions made by the assessee , remand report of the AO and the forwarding comments of the Addl. CIT and held that, in the absence of evidence to substantiate the outstanding creditors the Assessing Officer has rightly taxed the same as unexplained liability and accordingly confirmed the addition and dismissed the appeal of the assessee. 5. Aggrieved by the order of the Ld. CIT(A), assessee is in appeal before the Tribunal by raising the following grounds of appeal. "1. The order of the Ld. CIT(A) is erroneous in law, contrary to the facts, probabilities of the case and against the principle of equity and natural justice. 2. The Ld. CIT(A....

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....is no dispute in this regard. Learned Counsel for the Assessee argued that the closing stock as on 31.03.2012 was Rs. 3,15,76,030/- against which the sundry creditors were Rs. 3,27,40,100/-, hence there is no reason to suspect the sundry creditors. Since the purchase and sales are certified by the Agricultural Market Committee, Learned Counsel for the Assessee further argued that trading results to be accepted and addition made by the Assessing Officer be deleted. 7. On the other hand, Learned Departmental Representative strongly supported the orders of the Revenue Authorities. 8. We have heard both the parties and perused the material placed on record. In this case, it is evident from the record that the assessee has not produced books o....