SAGAR SAREES,MUMBAI vs. ACIT CIR 19(1), MUMBAI

Order u/s.254(1)of the Income-tax Act,1961(Act) लेखा लेखा सद�य लेखा लेखा सद�य सद�य राजे�� सद�य राजे�� राजे�� केकेकेके अनुसार राजे�� अनुसार अनुसार PER RAJENDRA, AM- अनुसार Challenging the order dated 10.10.2013 of CIT(A)-18, Mumbai the assessee has filed the present appeal. 2.The assessee firm engaged in the business of selling of sarees and dress materials filed its return of income on 29.9.2008 declaring total income of Rs.20,27,790/-.The Assessing Officer (AO) completed the assessment u/s. 143(3) of the Act on 24.12.2010 determining the income of the assessee at Rs.27,35,920/-. 3.The effective ground of appeal is about addition of Rs.6,83,085/-.During the assessment proceedings the AO found that the assessee had shown a liability of Rs.6.83 lacs towards M/s. Sagar Sarees as on 31.3.2008.He directed it to file necessary documents in that regard. He also called for details from his counterpart i.e. ITO-19(1)(2), Mumbai who was assessing M/s.Sagar.Vide his letter dt.13.12.2010 his counterpart informed him that in the balance sheet of M/s. Sagar the name of the assessee was not appearing as a debtor. On the basis of the said letter the AO held that the liability amounting to Rs.6.83 lacs shown by the assessee towards M/s. Sagar was not genuine.He added it back to the income of the assessee. 4.Aggrieved by the order of the AO the assessee preferred an appeal before the First Appellate Authority(FAA).Before him, it was argued that the disputed amount was appearing in the balance sheet of M/s.Sagar, that the AO had not verified the ledger and purchase account, that in response to notice u/s.142(1) of the Act dt.27.6.2012 the assessee had filed necessary evidences before the AO.After considering the submission of the assessee the FAA held that his predecessor had called for a remand report from the AO to verify the fact as to whether the amount of Rs.6.83 lacs was reflected in the books of account of M/s. Sagar, that the assessee had not filed any detail in its support.Finally, he upheld the order of the AO. 5.Before us,the Authorised Representative (AR) submitted that the assessee had filed the balance sheet and audited accounts of M/s. sagar, that in the books of account of M/s.Sagar the name of the assessee was appearing, that the AO/FAA had not verified the facts properly.

193/M/14-Sagar Sarees