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2014 (6) TMI 1038 - AT - Income TaxAddition u/s 68 - addition on account of bogus sundry creditors, the genuineness of which, the assessee utterly failed to prove - HELD THAT:- A.O. has rejected the books of account by mentioning numerous defects therein which has been discussed from page 2 to 9 of the assessment order. Thus there is implied rejection of books of account. To meet out any pilferage, etc., by enhancing and increasing the net profit rate, in our considered opinion, the ld. CIT(A) has justified his action. The trade creditors, obviously have to be included in the turnover of the year and in case of a civil contractor, the net taxable income can be arrived by applying the net profit rate of the total receipts. Although a lumpsum addition has been sustained by invoking different net profit rate, but a separate addition of sundry creditors by treating them as bogus, particularly, when these are trade creditors, the entire amount qua them is not justified. When the assessee is showing receipt of all these creditors and in that case even if the names and complete addresses thereof could not be given but the trade creditors cannot be treated at par with the cash creditors. - Appeal of the department stands dismissed.
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