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Income Tax Appellate Tribunal, PUNE BENCH “SMC”, PUNE
Before: SHRI R.S. SYAL
आदेश / ORDER
PER R.S.SYAL, VP : This appeal by the assessee is directed against the order passed by the CIT(Appeals)-2, Kolhapur on 21-07-2017 in relation to the assessment year 2009-10.
The only issue raised in this appeal is against the confirmation of addition of Rs.37,75,268/- made by the Assessing Officer.
Briefly stated, the facts of the case are that the AO, on examination of assessee’s ledger and cash book, observed that the assessee received payments in cash from the following parties :
Sl. Name of the party Amount 1 S.B. Zore Rs.4,07,022/- 2 Shafiq Darve Rs.1,00,000/- 3 Tajuddin Shamsuddin Rs.2,50,000/- 4 Rajesh Naik Rs.9,25,000/- 5 Rauf Hodykar Rs.2,00,000/- 6 Nagraj Trasi Rs.5,00,000/- 7 Nazir Sardar Rs.5,00,000/- 8 Habib Bhai Hata Rs.3,93,246/- 9 Harish Babu Saheb Rs.5,00,000/- Total Rs.37,75,268/- 4. The assessee was called upon to prove the genuineness of the above receipts. The assessee contended that the above persons were the debtors of the assessee company and payments were received from them during the year under consideration. However, the assessee could not produce the books of account of earlier year along with bills and vouchers to substantiate the genuineness of the debtors. The AO, therefore, made addition of Rs.37.75 lakh, which came to be affirmed in the first appeal.
Having heard both the sides and gone through the relevant material on record, it is seen that the case of the assessee is that a sum of Rs.37.75 lakh was received from opening balance of the debtors.
The AO has made addition of the same by observing that the assessee could not produce the ledger accounts of such parties or balance sheet etc., of the earlier year to show that the amounts become debtors in the preceding year on account of sale of goods, payments from which were received during the year. If the assessee has really received Rs.37.75 lakh from the debtors appearing in the balance sheet of last year, then obviously no such addition as unexplained cash credit can be made on the receipt of the amount. The fact that the assessee could not produce books for earlier years along with bills and vouchers shows that the contention of the assessee has remained unproved.
Under the given circumstances, I set-aside the impugned order and remit the matter to the file of AO for examining this issue afresh. In case the assessee proves that it received cash Rs.37.75 lakh from the opening balance of the debtors then, no addition should be made. In the otherwise scenario, the AO will decide the issue as per law.
Needless to say, the assessee will be allowed a reasonable opportunity of hearing.
The ld. Counsel for the assessee did not press any other grounds including ground nos. 2 and 3. These grounds are, therefore, stand dismissed.
In the result, the appeal is partly allowed for statistical purposes. Order pronounced in the Open Court on 21st March, 2022.
(R.S.SYAL) उपा�य�/ VICE PRESIDENT पुणे Pune; �दनांक Dated : 21st March, 2022 Satish
आदेश क� ��त�ल�प अ�े�षत / Copy of the Order is forwarded to :