SRI PALASH BHOWMICK,HOOGHLY vs. ITO, WARD-1(2), HOOGHLY, HOOGHLY

At the outset, it is noticed that this appeal by assessee is barred by limitation by 14 days and assessee has filed condonation petition stating the reasons that the assessee was seriously ill and doctor advised him to take rest for full one week w.e.f. 22.10.2014 and the appeal was getting time barred on 23.10.2014. Ultimately the assessee filed appeal on 05.11.2014. Accordingly, Ld. Counsel for the assessee before me stated that due to reasonable cause there was a delay in filing appeal and qua that assessee has also filed an affidavit. I find the cause as reasonable and accordingly, I admit the appeal.

The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the addition made by AO relating to sundry creditor (purchases) treating the same as unexplained cash credit u/s. 68 of the Act.

Briefly stated facts are that the assessee is a civil contractor engaged in civil construction work. During the course of assessment proceedings, the AO observed from the accounts of the assessee that there are sundry creditor in regard to purchases which have not been confirmed by the parties and accordingly, he added the same by treating the same as bogus sundry creditors at Rs.7,11,151/-, which are the following: Sl. Name of the sundry creditors Amount as Amount as per Difference No. per assessee confirmation 1 Laxmi Enterprise 1,62,630/- Not received - 2. Popular Tube Well & Rubber Industries 1,84,790/- Returned back unserved 1,84,790/-

I have heard rival submissions and gone through facts and circumstances of the case. Before me, Ld. Counsel for the assessee filed a paper book consists of pages 1 to 40 wherein he has filed details of purchases made from Popular Tube Well & Rubber Industries and outstanding balance as on 31.03.2009 at Rs.1,84,792/-. Similarly, the assessee has also filed copy of ledger account and purchase bills in respect to Mogra Cement Pipe Company amounting to Rs.1,62,697/- balance as on 31.03.2009, Shyam Enterprises amounting to Rs.1,85,200/- in respect to which the CIT(A) has confirmed the addition. The assessee in his paper book has filed complete details in respect to these three parties regarding purchases and outstanding amount. In respect to New Mohesh Brick field amounting to Rs.1,82,800/- the assessee could not file the purchase bills but filed only ledger account without confirmation. But on query from the Bench, Ld. Sr. DR could not controvert that the purchases are ingenuine. No doubt the assessee could not produce the bills respect to purchases made on account of New Mogra Brick Field but the Ld. Sr. DR also could not controvert that the purchases are made and the same are genuine. Once the purchases are accepted as genuine, the sundry creditor cannot be added as unexplained. In term of the above notice, I delete the addition and allow the appeal of assessee.

In the result, appeal of assessee is allowed. Order pronounced in the open court.