TaxTMI 
TaxTMI 
2020 (4) TMI 18
X X X X Extracts X X X X
X X X X Extracts X X X X
....posits - 47.73 lakhs b) Addition of unexplained sundry creditors - 40 lakhs c) Addition of unproved HDFC bank loan - 0.84 lakhs d) Disallowance of deduction claimed u/s 80C of the Act - 0.61 lakh. 3. The assessee is a civil contractor and he filed his return of income for the year under consideration declaring a total income of Rs. 10.08 lakhs. The assessee has declared income on estimated basis by adopting profit rate of 8%. It is further stated that the assessee has not maintained books of accounts. During the course of assessment proceedings, the AO asked the assessee to furnish statement of affairs as on 31/3/2010 and 31.3.2011, since the assessee claimed before him that he did not maintain any books of acc....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... into the savings bank account of the assessee was out of withdrawals of Rs. 37.27 lakhs made from the current account of the assessee. The ld AR prayed that the above said certificate may kindly be admitted as additional evidence. He further submitted the cash deposits made into the savings bank account actually represents business receipts partly and some of the deposits have been made out of earlier withdrawals. He submitted that the assessee did not maintain books of account and hence the AO was justified in requesting for fool proof evidences. Accordingly he prayed that this addition may kindly be deleted. 5. On the contrary the ld AR submitted that the assessee has not furnished proper explanations with regard the sources of deposi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt of Affairs. However, the Ld CIT(A) has proceeded to decide the issue under the presumption that the confirmation letters were not furnished, which is against the facts available on record. He submitted that the assessee is a civil contractor and has been dealing with people from unorganized sector, who also did not maintain books of account. Hence they could not also confirm from memory the balances outstanding against their name as on a particular date, since the assessee is having running account and continuous dealing with them. The ld AR relied on a decision rendered by Kolkatta SMC Bench of Tribunal in the case of Mohankumar Agarwal Vs. ITO (ITA No.1750/Kol/2018 dated 8/5/2019) and submitted that no separate addition should be made ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ok that the assessee has furnished confirmation letters claimed to have been produced before ld CIT(A). Those confirmation letters are addressed to Ld CIT(A) only. However the ld CIT(A) has observed that the assessee has not furnished the confirmation letters which is contradictory to copies of confirmation letters available on record. In any case the confirmation letters have not been furnished before the AO and hence there was no occasion for the AO to examine this letters. Accordingly we are of the view that this issue also requires fresh examination at the end of the AO. Accordingly we set aside the order passed by ld CIT(A) on this issue and restore the same to the file of AO for examining it afresh by duly considering the confirmat....