SHRI KAMLESH RAYMALJI CHIPPA,ANAND vs. ITO, WARD-2, ANAND

The assessee has raised following grounds of appeal:- “1.1 The order passed U/s. 250 passed on 1-6-2018 by CIT(A)

Ground nos. 1.1 and 1.2 are not pressed by the ld. counsel of the assessee, therefore, the same stand dismissed.

Ground Nos. 2.1 & 2.2 are pertained to the solitary issue of confirming the addition of Rs. 1,31,689/- in respect of sundry creditors as bogus.

The fact in brief is that return of income declaring income of Rs. 7,41,644/- filed on 18th Sep, 2014. The case was subject to scrutiny assessment and notice u/s. 143(2) of the act was issued on 18th Sep, 2015. During the course of assessment on verification from the contra accounts of sundry creditors the Assessing Officer noticed differences in the sundry creditors to the amount of Rs. 2,01,082/-. Therefore, the same was disallowed and added to the total income of the assessee. Out of the aforesaid disallowance amount, an amount of Rs. 1,31,689/- was pertained to Samith Steel which the assessee has contested before the ld. CIT(A) on the ground that due to posting error the payment was shown as made to S. Kumar Enterprises. The assessee has submitted the supporting document of reconciliation before the ld. CIT(A). However, the ld. CIT(A) has dismissed the appeal of the assessee holding that assessee has failed to explain the same before the Assessing Officer.

During the course of appellate proceedings before us, the ld. counsel has vehemently contended that during the course of assessment proceedings, the error was fully explained in respect of difference of Rs. 1,31,689/- which was arised because of posting error. In this regard, the ld. counsel has placed the supporting document i.e. ledger account of S. Kumar Enterprises, Smith Steel, copy of bank account, statement in support of his claim that the sundry creditor balance was properly reconciled. On the other hand, the ld. Departmental Representative has supported the order of lower authorities.

Heard both the sides and perused the material on record. During the course of assessment, the Assessing Officer has made addition of Rs. 1,31,689/- because of differences in the contra-account. In this regard, it is noticed that assessee has explained in his submission which has also been reproduced in the finding of the ld. CIT(A) at page no. 2 & 3 of the assessment order wherein the assessee has submitted that difference in respect of M/s. Smith Steel of Rs. 1,31,689/- was on account of wrong posting made in the account of S. Kumar Enterprises. It was pointed out that the payment of Rs. 1,31,689/- made to Smith Steel by cheque no. 0006 of HDFC Bank Ltd. on 16th August, 2013 was wrongly posted in the account of S. Kumar Enterprises by the accountant of the assessee. The assessee has placed in the paper book, copy of ledger account of S. Kumar Enterprises on page no. 8 of the paper book and the copy of bank statement on the page no. 14 of the paper book to demonstrate making wrong posting inadvertently. In the light of the aforesaid facts and the material placed in the paper book and mentioned in the submission of the assessee reproduced in the order of ld. CIT(A), we observed that ld. ld. CIT(A) has ignored the Page No 4 Shri Kamlesh Raymalji Chippa vs. ITO material fact of the case and dismissed the appeal of the assessee in a general manner. Therefore, looking to the aforesaid infirmity in the action of the ld. CIT(A), we restore this issue to the file of the Assessing Officer to adjudicate the same by speaking order after specifically considering the relevant supporting evidences and detail furnished by the assessee after affording adequate opportunity of hearing. Accordingly, this appeal of the assessee is allowed for statistical purposes.

In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 07-10-2021 Sd/- Sd/- (MADHUMITA ROY) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 07/10/2021 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,