2010 (2) TMI 1280

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....and arises out of the assessment completed u/s.143(3) of the Income tax Act, 1961.   2. The assessee is a dealer in silk sarees.  It has filed its return of income for the impugned assessment year 2001-02 declaring total income of Rs. 24,02,600/-.  Assessment was completed u/s.143(3).  Assessing Officer determined the taxable income at Rs. 52,88,494/-.   3. In the course of assessment proceedings, it was noticed by the Assessing Officer that an aggregate sum of Rs. 24,29,115/- was payable by the assessee to five weavers at Bangalore and Doddaballapur.  The assessee has shown these accounts payable in the name of those creditors as part of running accounts.  The assessing authority issued letters t....

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....,67,100/- on the basis of the remand report filed by the assessing authority.  The Commissioner of Income-tax(A) made a disallowance/addition of Rs. 6,60,615/- as against the addition of Rs. 3,67,100/- made by the assessing authority.   5. The Commissioner of Income-tax(A) has deleted disallowance of Rs. 39,680/- made by the assessing authority u/s.40A(3).  He has also deleted the disallowance of Rs. 50,000/- related to traveling expenses.   6. The assessee is highly aggrieved by the additions sustained by the Commissioner of Income-tax(A), in fact enhanced, in respect of unproved credit balances reflected in the accounts.   7. We heard Shri. V. Srinivasan, the learned Chartered Accountant, appearing for th....