I.T.O. Vs. JAGGI ISPAT PVT. LTD.

JUDGEMENT

(1.) THIS is an appeal by the Department against the order dated 30 -08 -2010 of Ld. Commissioner of Income -Tax [Appeals] -I Kolkata.

(2.) FOLLOWING grounds have been raised in this appeal: -

(3.) THE facts of the case in brief are that the assessee filed the return of income on 31 -10 -2007 declaring total income of 'nil' which was processed u/s. 143(1) of the Act on 18 -09 -2008. Thereafter the case was selected for scrutiny. During the course of assessment proceedings, the AO noticed that the assessee was having sundry creditors for goods amounting to 59,44,003/ -, sundry creditors for others of 72,26,542/ - and the advance from customers of 9,82,248/ -. He asked the assessee to produce the details of the above. In response, the assessee submitted that balances under sundry creditors for goods, sundry creditors for other and advance for customers are lying in the accounts for many years and their names had been mentioned in Schedule 6 of the Audit Report. The AO was not satisfied with the submission of assessee and made the addition of 1,41,52,793/ - by invoking the provisions of Sec. 41(1) of the Act.