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2018 (7) TMI 119 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - Addition on account of sundry outstanding creditors - Held that:- The assessee has duly disclosed the sundry creditors in its books of accounts, which were not verified during the assessment proceedings for want of present address. But that does not mean that the assessee has concealed the particulars of income or furnished inaccurate particulars of income. The impugned sundry creditors are arising from the purchases which have not been disturbed by the lower authorities. Lower authorities have accepted the purchases but corresponding creditors have been added to the total income of the assessee for want of the address. In our considered view the addition on account of sundry creditors arising out of purchases cannot be added without disturbing the corresponding purchases. Sundry creditors arising out of the purchases which were debited in the profit & loss account as revenue expenses - None of lower authorities have been brought on record that there was a deliberate act on the parts of the assessee suggesting that the assessee has claimed bogus purchases either by concealing the income or furnishing inaccurate particulars of income. In view of above we reverse the order of the authorities below. The ground of appeal of the assessee is allowed.
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