2020 (9) TMI 627

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....e is directed against the order passed by the CIT(A)-5, Pune on 30-11-2016 in relation to the assessment year 2011-12. 2. The only issue raised in this appeal is against the deletion of addition of Rs. 2,95,60,819/- made by the Assessing Officer (AO) u/s.41(1) of the Income-tax Act, 1961 (hereinafter also called 'the Act'). 3. Briefly stated, the facts are that the assessee is a contractor who f....

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....ition was made by the AO, the assessee submitted that the AO wrongly invoked section 41(1) of the Act in respect of all the 45 creditors appearing in the books of account. It was also stated that periodical transactions were taking place on account of purchases and payments made through cheques in these accounts. The assessee also furnished confirmation of ledger extracts of sundry creditors. The ....

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.... all the sundry creditors. This was done on the premise that the assessee could not furnish confirmations. We have noted above that the AO did not grant adequate opportunity of hearing to the assessee. However, the assessee furnished relevant evidence during the remand proceedings. The AO pinpointed inconsistencies in respect of two accounts, namely, Milano Bathroom Fittings Pvt. Ltd., where the c....

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....the parties to the extent noted above. Except for these two parties, the AO, in the remand proceedings, did not point out any inconsistency calling for the applicability of section 41(1) of the Act. This section, in turn, states that where an allowance or deduction has been made in the assessment for any year in respect of loss or expenditure or trading liability incurred by the assessee and subse....