A.C.I.T. Vs. DURGA KRISHNA STORE

JUDGEMENT

(1.) THESE appeals by the revenue and Cross Objection by the assessee emanate out of the orders of ld. CIT(A) -Siliguri dated 31.03.2008 and pertain to A.Yr. 2003 -04.

(2.) AT the threshold it is noted that there is a delay of 13 days in filing of appeal by the Revenue. The revenue has filed a condonation petition for the delay. Upon careful consideration of the condonation petition and after hearing both the counsel we condone the delay.

(3.) IN this case the AO found that the assessee is a civil contractor. The total turn over of the assessee was Rs. 12,06,81,735/ - and Gross profit was Rs. 77,13,029/ -. On examination of the books of account AO found that the assessee was not maintaining proper books which were mostly supported by self made vouchers. The assessee also showed sundry creditors of Rs. 1,47,54,422/ - in the name of three persons who happened to be the employees of the assessee. The assessee had explained that these persons were employees of the assessee firm and money was transferred to them to make payments on account of expenses incurred in different work sites. AO was not satisfied by the explanation submitted in this regard. AO found that the explanation of the assessee is not satisfactory and AO added an amount of Rs. 1,47,54,222/ -. He also noted that the assessee has made security deposit of Rs. 33,08,848/ - which were not reflected. He also added the same.