TaxTMI 
TaxTMI 
2019 (5) TMI 1696
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....gs like alleged SOA of earlier year is also made basis for addition in current year. 3. Because learned commissioner of Income Tax further erred in sustaining the said addition of Rs. 20,17,338/- u/s 69 of the Act by invoking his plenary powers without appreciating the fact that onus lay for making such addition is not discharged. 4. Because learned commissioner of Income Tax erred in sustaining the addition of Rs. 43,76,781/- , being business creditors, without appreciating the huge evidences on the record proving the credits, their repayment and acceptance in subsequent years etc. etc. merely relying on the wrong/irrelevant observations made by ld. AO in remand proceedings. 5. Because learned commissioner of Income Tax further erred in sustaining the said addition of Rs. 43,76,481/- without appreciating the fact that neither any of evidences of assessee are found wrong nor there is any material against the assessee and addition of business creditor u/s 68 of the Act itself is wrong in the circumstances of the case." 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : assessee being an individual taxpayer filed return of income at the....
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....f 6.07% and NP rate of 2.28% on the gross turnover of Rs. 1,56,63,302/-. It is also not in dispute that the assessee has not disclosed his saving bank account maintained with ICICI Bank wherein he has deposited an amount of Rs. 20,17,338/-. It is also not in dispute that during the appellate proceedings, the ld. CIT (A) has called the remand report from the AO. It is also not in dispute that after accepting the remand report, the ld. CIT (A) has accepted the contention of the assessee that addition is not sustainable u/s 68 of the Act but confirmed the addition u/s 69 of the Act. 9. In the backdrop of the aforesaid facts and circumstances of the case, we would decide the present appeal ground-wise. GROUND NO.1 10. Ground No.1 is general in nature, hence does not require any adjudication. GROUNDS NO.2 & 3 11. When we examine the cash deposit of Rs. 20,17,338/- in the saving bank account of the assessee maintained with ICICI Bank which account has not been disclosed by the assessee in his ITR, in the light of the bank statement issued by PNB Housing Finance Ltd., it is proved that the assessee has withdrawn Rs. 10,00,000/- from this account on 11.02.2008. Assessee has duly ....
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....ng and has submitted before the ld. CIT (A) (i) copy of statement of affairs as on 31.03.2008 and of 31.03.2009; (ii) copy of SB A/c with ICICI under question/Mahamedha Bank and loan a/c with PNB of assessee; (iii) copy of capital account in the books of M/s. Allien Ent. as filed before AO; and (iv) copy of day to day running account (Drawing a/c) in the books of M/s. Allien Ent. showing deposits/ withdrawals on day to day basis. 14. It is also the case of the assessee that he has availed of a loan of Rs. 38,00,000/- from PNB Bank which is deposited with ICICI Bank out of which Rs. 10,00,000/- was withdrawn and unused amount is reflected in opening statement of affairs. 15. AO filed the remand report who has rejected Statement of Affairs (SOA) read with underlined statement only on the ground that the copies of accounts / SOA filed before the Department does not match with the details furnished before PNB for loan taken in earlier year i.e. AY 2008-09. However, the ld. CIT (A) has relied upon the remand report without returning any independent findings despite the fact that the assessee has duly explained all the SOA which gets tallied with day-to-day cash flow and drawing acco....
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....rs as under :- Name Amount Evidences filed ADR Steel Corporation 14,80,363/- Purchase bills: PB 144-154, Confirmation: PB 93-94 Payment evidence (Bank a/c): PB 95-96 Direct confirmation: PB 265-266 Chaudhary Iron Traders 22,50,000/- Purchase bills: PB 142-143 Confirmation: PB 106-108 Payment evidence (Bank a/c ): PB 101-105 Direct confirmation: PB 97 -100 You Like Machinery 5,90,000/- Purchase bills: PB 155-156 Confirmation: PB 109-111 Payment evidence (Bank a/c): PB 112-113 Direct confirmation: PB 262-263 Note: No purchases in Current Year, only opening balance paid in subsequent years and therefore, sec. 68 does not apply. Milk Traders 56,418/- Purchases from party and corresponding sales stands accepted. 21. When the assessee has duly brought on record the fact that the purchases are supported with invoices giving complete address/TIN/Truck number etc. along with confirmation of the trade creditors including confirmation of subsequent years with address/PAN, bank statement showing that the entire payment has been made through banking channel, the same cannot be thrown into the dustbin without passing reasoned order. The assessee has also prov....