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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.