AO cannot make addition after maintaining complete books of account with the Tax Audit report only on the basis of entries made on 31st March

Last updated: 19 June 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The brief facts of this issue are that while doing the scrutiny assessment Assessing Officer has added an amount of Rs.23,49,260/- by observing that: “During the course of survey, a compact disc containing books of a/cs. were impounded. The print out of the same disc has been taken in presence of Sri Sudipta Hazra, one of the partners of M/ s Shalimar Floors. ,JR- 1 & JR-2 contain the print out of books of a/cs. On scrutiny of JR- 2 vide page no.2 & 3 which was impounded, reveals that the assessee firm made some payments through cash, amounting to Rs. 23,49,260/- to various purchase parties. The A/R was asked to explain in this regard. In response, the A/R filed ledger copies of 14 parties to whom payments were made a @ Rs.20000/- each time and also produced computerized cash book to show the reflection. He was again asked why only on 31.3.2008, at the fag end of the year, cash payment amounting to Rs.2349260/- was paid to 14 parties? In reply, the A/ R submitted through written submissions

Citation :
M/s.Shalimar Floors Kolkata (PAN: AAMFS 4467 K) (APPELLANT) -Versus- I.T.O., Ward-49(3), Kolkata (RESPONDENT)