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2012 (9) TMI 182 - AT - Income TaxAddition on account of unexplained creditors - Held that:- From the perusal of ledger accounts of one creditor it can be concluded that the opening balance and closing balance are the same figure and no transaction was made during the year under consideration. It is also observed that the address of the sundry creditor was furnished to the Assessing Officer and the Assessing Officer has admitted in the assessment order that the letter written to the aforesaid creditor was delivered, thus there is no material on the record on the basis of which the amount could be treated as income of the assessee during the year under consideration - no material could be brought on record by the Revenue to show that the amounts ceased to exist as liability of the assessees during the year under consideration. No material had been brought on record by the Revenue to show that purchases from the second creditor by the assessee were not genuine or in fact, the both the assessees has paid any amount more than Rs. 2,30,000/- and 2,00,000/- respectively in the assessment year under consideration to the said party. In the above circumstances addition made for want of confirmation was not warranted when the purchases were duly supported by bills and substantial subsequent payment was made through banking channel. On addition in regard to third creditor the Revenue was not justified in making the addition being unpaid purchase price as at the year end only for want of confirmation without bringing on record any material to show that the entries made in the regular books of account were not correct. Thus, the entire addition is unsustainable - appeal in favour of assessee. Levy of interest u/s 234B - Held that:- As the addition made by AO have been directed to be deleted assessee is to granted consequential relief for interest under section 234B - in favour of assessee.
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