GIRRAJ MEHTA Vs. THE COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The instant appeal u/sec. 260A is directed against order dated 18.7.2014 passed by the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur, in M.A. No. 1/JP/2013 in ITA No. 1069/JP/2010. It relates to assessment year 2007 -08.

(2.) For the reasons assigned, the application u/sec. 5 of the Limitation Act stands allowed and the delay in filing appeal stands condoned.

(3.) The brief facts noticed for disposal of the said appeal are that the appellant -assessee submitted a return declaring income of Rs. 2,15,330/ - and thereafter on examination of books of account it was noticed that the assessee has shown sundry creditors of Rs. 4,76,537/ - in the name of Dee Jay Steels, New Delhi, and on a further enquiry from the said creditor u/sec. 133(6) it transpired that notice which was sent by the Assessing Officer to the address given by the appellant of the said creditor, returned undelivered by the postal authorities. The AO again desired the assessee to file complete address of the party as also the confirmation and other material to substantiate the entry shown in the name of said creditor. On further enquiry it was noticed by the AO that the account was squared up in the financial year relevant to the assessment year 2007 -08 and payment of Rs. 1,50,000/ - was shown through three cheques of Rs. 50,000/ - each and balance amount was shown to be paid in cash below Rs. 20,000/ - on various dates. On a further enquiry by the AO from the concerned bank where the cheques were drawn the bank conveyed that all the three cheques were presented over counter by bearer of the cheques and favouring self. Faced with the said material brought on record by the AO, the assessee filed a reply on 4.12.2009 mentioning therein that it could not get the confirmation from the said creditor and surrendered the amount for taxation in order to avoid further litigation and to have mental peace, and thus entire amount of Rs. 4,76,537/ - was offered for taxation. The AO accordingly made an addition u/sec. 41(1)(a) of the Income Tax Act, 1961. The other additions were also made.