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in the books of account of the assessee firm transactions entered in the name
of these persons were many fold then declared and affirmed in the affidavit.
In view of the above facts and circumstances it is concluded that the
assessee firm has filed wrong affidavits in the name these persons which are
in no manner round reliable and genuine to be considered confirmation of
credit entries shown by file assessee firm.
The assessee was requested to furnish cogent and supporting
documents if any for the above said "so-called" loans received from the
various about creditworthiness and genuineness of the transactions. The
assessee has failed to produce any specific details with respect to their
identity, creditworthiness and genuineness of these creditors. Hence mere
filing of confirmatory letters/affidavits does not discharge the onus that lies
upon the assessee.
However, in the instant case the assessee has misled the department
by filing /wrong affidavit. The intention of the assessee is malafide and
deliberately attempted to give wrong information in the name of various
persons. It is totally false and contradictory to the figures appearing in the
books of account in the name of these persons.
Hence it is clear from the above discussion that the credit entries in the
books of accounts of the assessee arc unexplained credit entries introduced in
the books of account from undisclosed sources of income. Therefore, amount
of Rs. 78,77,5007- is added to the total income of the assessee treating the
same as unexplained credit entries ( As per Annexure ( A') u/s 68 of the IT
Act, 1961."
During the course of assessment proceedings, the AO had noticed
number of cash deposits appearing in the books. To get such deposits verified
on test check basis, 24 affidavits were submitted by assessee in support of
some of such sundry creditors (out of 43 parties whose confirmation were on
plain papers duly signed by the concerned persons and the appellant
confirming therein about such petty deposits). After dealing with two
affidavits of Svs. Subhash Chandra and Roshan Lal, the AO had concluded
that 'the appellant had filed "wrong affidavits" in the name of these persons
which are in no manner found reliable and genuine and cannot be considered
M/s Ravi Construction Company.