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2022 (5) TMI 1330 - ITAT CHANDIGARHAddition on account of large increase in Sundry Creditors with respect to turnover during the year - A/R submitted that it is an admitted fact that during the course of assessment proceedings the assessee could not substantiate the increase in the quantum of sundry creditors through documentary evidence - CIT-A deleted the addition - HELD THAT:- We find that the Ld. CIT(A) has recorded a clear finding regarding domestic creditors as well as overseas creditors that their identity, credit-worthiness and genuineness of the transactions have been duly verified by the AO during the remand proceedings and no adverse finding has been recorded in this regard. During the course of hearing, nothing has been brought to our notice to disturb the said findings of the Ld. CIT(A) and therefore, the said findings remain unrebutted before us. Regarding the general trade practice of import against letter of credit, the Ld. CIT(A) has sought explanation from the assessee where the assessee has submitted that due to long standing business dealings with the suppliers of gypsum in Pakistan, they have not insisted on supply against letter of credit and the supplies have been regularly made against payments through regular banking channels and such practice is going on for a long time and being satisfied, CIT(A) has accepted the said explanation and we do not find any perversity in the said findings of the Ld. CIT(A) given the facts of the present case as against the general trade practice. In light of the same, we hereby confirm the findings and order of the Ld. CIT(A) and the ground of appeal taken by the Revenue is dismissed.
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