TaxTMI 
TaxTMI 
2022 (5) TMI 1018
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.... the assessment year (AY) 2003-04. 2. While admitting the present appeal on 4th September 2009, the following Questions were framed for consideration: "(i) Whether on the facts and in the circumstances of the case, the ITAT was right in law in holding that the Assessee's explanation with regard to addition of Rs.41,78,650/- cannot be accepted as true and whether that finding was vitiated by ignoring relevant evidences and submissions made before it and taking into account irrelevant materials? (ii) Whether on the facts and in the circumstances of the case, the ITAT was right in law in confirming the addition of Rs.72,478/- on account of fittings which has been sold along with the pipes, the value of which has been i....
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....ME. In support of the contention, certain bills of RIL for purchase of PVC resin were furnished by the Assessee which showed KME to be an agent of RIL for the Calcutta region. 6. The Assessee claimed that there was a debit balance in the sum of Rs.1,65,32,778/- in the name of KME as on 31st March, 2003. Since the credit balance in the name of RIL was Rs.2,16,50,327/- and debit balance in the name of KME was Rs.1,65,32,778/-, the net credit balance in the name of RIL was worked out by the AO at a figure of Rs.51,17,549/-. The AO then took note of the figure of debit balance for the Assessee in the books of RIL i.e. Rs.9,38,898/- and worked out that the inflated credit balance as on 31st March 2003 was Rs.41,78,651/-. 7. The Assessee th....
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....e Assessee as regards addition of Rs.5,57,453/- on the account of KETL. The addition of Rs.72,478/- with regard to discrepancy of stock was also confirmed. 11. As regards the addition of Rs.6,62,393/-, it was noted that the CIT (A) had required the AO to submit a remand report in ten cases of sundry creditors whereas the AO had issued summons under Section 131 of the Act only in eight cases. Effort was not taken by the AO to enforce the attendance of some of the above parties. The ITAT concluded that the AO had given sufficient opportunity to the Assessee to furnish evidence to prove the genuineness of credit balance. It was held that if the parties did not appear despite notices, the burden shifted to the Assessee to ensure the presenta....
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....s the decision in Achutananda Baidya v. Prafullya Kumar Gayen AIR 1997 SC 2077 and Omar Salay Mohamed Sait v. Commissioner of Income Tax, Madras AIR 1959 SC 1238. 14. The above submissions have been considered. As regards the Question No.(ii), the issue concerning differential stock has resulted in addition of only Rs.72,478/- and the Court therefore does not wish to examine this Question any further. The Court has examined the concurrent findings of the AO, CIT(A) and the ITAT in this regard and is of the view that they do not call for interference. 15. As regards Question No.(iii) concerning the addition of Rs.6,62,393/- on account of unexplained non-existent creditors, the Court is satisfied that sufficient opportunity was granted ....