2022 (9) TMI 456

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....to the Assessment Year (A.Y) 2014-15. 2. The brief facts of the case is that the assessee is an individual and Proprietrix of S.K. Associates. For the Assessment Year 2014-15, the assessee filed her Return of Income on 22.11.2014 declaring total income of Rs. 2,90,970/-. The return was taken up for scrutiny assessment and notice u/s. 143(2) was issued. 2.1. The assessee carried on the business of trading in Ferrous, non-ferrous Scrap. The assessee shown the total turnover of Rs. 8,03,03,626/- with Gross Profit of Rs. 7,74,484/- which worked out to 0.96% as Gross Profit The total net profit shown is Rs. 3,96,134/- which is 0.49%. 2.2. Perusal of the balance sheet, the Assessing Officer found that there are total sundry creditors of ....

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....Enterprises, Purchase and sales register. 3.1. It is worth mentioning here that during the assessment proceedings assessee was time and again asked to produce the confirmation of the creditors. Letters issued to the creditors at the given addresses were returned un-served. Hence, this office issued notice u/s. 142(1) dt 22/08/2016, along with the copy of the letter issued u/s. 133(6) of the Act to ACE Enterprises, requesting to produce the required details as mentioned in the-letter on the date of hearing. Further, it was requested to produce the contra account of Rudra Enterprises in which the outstanding balance is of Rs. 2743021/-. However, on the given date the details called for were not furnished. Inspector of this office was....

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.... from ACE Enterprise. The Managing Partner of ACE Enterprise went in the underground and submitted copies of summons from Metropolitan Court, Cancellation of VAT number, etc. Therefore the assessee could not get confirmation from ACE Enterprise. The assessee also further contended that she had made payment during the Financial Year 2014-15 & 2015-16 to ACE Enterprises and produce copy of the bank statement. 3.2. After considering the above submissions, the ld. CIT(A) confirmed the addition made by the A.O. as follows: 3.5.1. In respect of transaction with ACE Enterprises, during the assessment proceedings the AO has called for certain details from the appellant however, the appellant has failed to furnish the same. The AO has al....

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....nsaction in which the appellant has failed. Considering all these facts the addition made by the AO amounting to Rs. 53,64,621/- in respect of outstanding liability in the name of ACE Enterprise is confirmed. 5. Aggrieved against the same, the assessee is in appeal before us and raising the Following Grounds of Appeal: 1.01. That Learned C. I. T. (Appeal) - 5, Ahmedabad has erred in confirming addition made by Learned Assessing Officer of Rs. 53,64,621/- u/s. 68 of The Income Tax Act, 1961. 1.02. That various reasons advanced by Learned C. I. T. (Appeal) - 5 Ahmedabad while conforming addition are contrary to the facts and circumstances of the case. 1.03. Therefore addition of Rs. 53,64,621/- u/s. 68 of The Inc....