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Addition of cash creditors

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This query is : Resolved

SUBHASH MISHRA (Querist)

23 February 2009 Respected sir,
In the assessment proceedings u/s 143(3) of the IT Act the AO has added about Rs. 30,00,000/- on the ground that some of the cash creditors were not doing transactions in their bank account since a long time. Beside this some of them opened their bank account before two or three days ago from their transactions. Even they are income tax assessee and filing their ROI regularly. All the balances are properly shown in their balance sheets.
Is it justifiable that the AO is making addition on these ground. If you have some case laws favoring the assessee's case then please suggest. My mail address is subhneelmishra@yahoo.co.in

Thanks with regards
(Subhash Mishra)

Jitender

Jitender (Expert)

23 February 2009 there is no justification of such kind of aditions.

C A GROUP COACHING

C A GROUP COACHING (Expert)

24 February 2009 ACT OF THE AO SEEMS PURELY UNJUSTIFIED. THERE ARE CASE LAWS ON THIS ISSUE. PLS REFER THE SITE
www.bcasonline.org
Incase you require any other help

CHANDRAKANT AMBANI
BOMBAY
9819408963
9821240674

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