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2012 (11) TMI 472 - AT - Income TaxBogus creditors - CIT(A) deleted the addition - Held that:- Balances of sundry creditors appearing in the balance sheet could not have been assessed as income in the hands of the assessee without proving them to be non-genuine. There is no finding of the AO that the assessee has paid these creditors out of unaccounted money or the balance shown in the balance sheet as sundry creditors were fictitious entries. Assessee has submitted before the CIT(A) that these balances consisted of earlier years’ balances also but the AO has not made further inquiries in the matter by issuing summons etc. to the creditor parties to verify the genuineness or otherwise of balances in the trade accounts - addition made was rightly deleted by the CIT(A) - in favour of assessee.
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