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2014 (12) TMI 1008 - AT - Income TaxAddition made by treating creditors as unverifiable creditors – addition u/s 41(1)(a) - Held that:- Out of the total addition made u/s 41(1), the major addition is with respect to Bhikubhai Patel - assessee has submitted that translated copy of the reply given by Bhikubhai Patel to the AO in response to the submissions issued to him u/s. 131 – assessee has not entered into any transaction with the Assessee’s firm in FY 06- 07,-07-08 & 09-10 - there is no finding either by CIT(A) or by the AO that the Assessee had entered into transaction with Bhikubhai Patel in year ending 31st March 2004 and the nature of transaction - this factual aspect needs fresh verification and for which the matter is remitted back to the AO for examination of the contentions of the assessee that the amount was payable since year ending 2004 - with respect to the other parties, there is no evidence either in the form of confirmation letter PAN number, addresses or any other form was submitted by the Assessee in support of its claim that the liability exists - no material has been placed on record by the Assessee to demonstrate that it has paid the creditors the amount in subsequent years nor there is any finding on the same of AO or CIT(A) - assessee should be granted one more opportunity and also to demonstrate the subsequent payments – thus, the matter is remitted back to AO – Decided in favour of assessee.
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